Has anyone financed with conventional loans?

searcher profile

May 23, 2024

by a searcher from University of Pennsylvania - The Wharton School in Los Angeles, CA, USA

I am looking at an acquisition ($2M) where I can bring a 50% down payment. Has anyone completed an acquisition using non-SBA conventional loan? Any tips on how to find lenders?

4
23
377
Replies
23
commentor profile
Reply by a lender
in United States
^redacted‌, Here’s a tip for securing conventional financing: Start local. Apply for a loan at a community bank in the same area where the business you’re buying operates. Even better, if you can find out where the current business owner banks, apply there. Why? These smaller banks are eager to retain those business deposits, treasury management, and loan needs. They're more inclined to approve a loan if you’re bringing a significant down payment, say 50%, or you have assets like home equity to pledge, AND the bank retains the overall business relationship needs. The bank has known the business for years, making the deal more attractive.

When you apply, you mention bringing the entire business bank relationship to them. That will perk their ears of interest. Community banks are deeply invested in supporting local businesses. Going directly to the community bank source will save you on third-party costs. From my prior corporate days as a business banker at a small community bank, I can tell you that the President was not keen on SBA loans, and the bank wasn't set up for it. But we made solid business acquisition conventional loans happen if the numbers made sense and the deal was solid. Thanks for the tag ^redacted‌
commentor profile
Reply by an intermediary
from Creighton University in Los Angeles, CA, USA
^redacted‌ You should use SBA loans because they will be more favorable terms and a better interest rate. You easily can get prime or even sub-prime. For context, we connect borrowers and SBA 7(a) lenders, functioning as an automated loan broker. You can learn more here [https://godealwise.com/beacon]
commentor profile
+21 more replies.
Join the discussion