sba loans and self-funded searchers

searcher profile

January 21, 2022

by a searcher from Northwestern University - Kellogg School of Management in Fort Lauderdale, FL, USA

Do self-funded searchers have difficulty getting approved for a loan given they have no income or are the loans approved solely on the health/cash-flow of the business being purchased?................

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Historic Cashflow and debt service coverage of the target company are key. Complimentary and relatable experience of the buyer are important, not necessarily direct industry in most cases. Calling all searchers DM me and I am happy to share links for our weekly office hours. ^redacted‌ and ^redacted‌ discuss all things SBA, qualifying, pre-LOI process, cashflow modeling. redacted Happy Searching.
commentor profile
Reply by a lender
from The University of Chicago in Schaumburg, IL, USA
The performance of the target company is the primary criteria. If the target's historic cash flow and pro forma DSC are strong, much of the battle is won. However, a buyer with a strong personal balance sheet, income from other sources or great work experience can offset any weaknesses in the target's cash flow or business model.
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