Shan, it is always a good idea to talk with an SBA lender, or three, before pursuing the purchase of a business. However, "prequalifying" you as a buyer is very difficult and often not worth the paper a prequalification letter is written on. The reality is, 70% to 80% of our lending decision in a business acquisition request is based on the seller's business, its adjusted cash flow, revenue/expense trends, industry, location, history, to name a few. Yes, you as a buyer are important to the transaction but the business you are purchasing is often more important to the lending decision. What you glean from getting "buyer prequalified" is a general overview of what is needed/required/expected, what a lender is looking for, etc. If you have the necessary down payment/cash investment, additional liquidity for working capital purposes (post acquisition), industry/transferable management experience, and acceptable credit, you likely have what it takes to buy a business and are therefore "prequalified" to do so. Most business brokers don't ask for a lender prequalification letter but having one cannot hurt either! It shows you are proactive, have done some preliminary homework, and are likely a serious buyer (not a tire-kicker). Having a completed PFS form and Managment Resume available for a business broker is very important and shows seriousness. Cheers and good luck, Robert

Shan, I would definitely recommend talking to someone to be sure you understand the lending process. Although I agree with Robert that a pre-approval does not mean much up front, unfortunately some brokers do require something indicating someone has reviewed your financials and you have the money to put down and reasonable credit. I would be more than happy to talk with you at any time about what is involved in the process. We are a commercial loan brokerage shop with roughly 500 funding partners with many SBA partners. You can reach me directly at redacted