Non-SBA lending options for purchasing a pool route?

searcher profile

June 19, 2024

by a searcher from Harvard University in Los Angeles, CA, USA

Hi all - I own a pool cleaning and repair company in CA, and looking to expand. A somewhat large pool route in my area recently went up for sale, and not feasible for me to pay all cash for it. For a number of reasons, pool route purchases are very rarely SBA-eligible. What are folks' recommendations for funding the purchase of a pool route (outside of seller carry)? Thank you in advance!

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commentor profile
Reply by a searcher
from Columbia University in Las Vegas, NV, USA
I would be very interested to hear how this goes. Everyone is always so terrified of buying pool routes when you talk to them. Someone told me 'you lose half the customers in a year' - but at 1.5x earnings that's still pretty good! I haven't done it myself, but I have diligenced it. If you own a pool company, then I would think its a no brainer so long as you realize that there will be some investments required (e.g. new trucks) to get it up to speed as well as introducing yourself.
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Reply by a searcher
in Meridian, ID, USA
Would be curious to learn why it's not SBA eligible, especially if you already own a company in the space. I know someone who just was able to buy a company SBA without a 10% equity injection because they owned a business with the same NAICS code.
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