How CBA can help you with financing the purchase of a business
The team at CBA can help you finance your business purchase in a variety of ways. Having a local partner help you through the process can prove to be a valuable resource. We’ve seen thousands of deals, many which have been financed with SBA or conventional bank loans. It’s a challenging journey from start to finish. The smartest business buyers have an advisor guiding them through the process.
How you can utilize CBA to finance your business purchase:
Leveraging an expert’s opinion
Whichever advisor you deal with at CBA will effectively guide you in a decisive direction. Important topics to cover: How big is the business? What city or region of the state is it in? Is it owner-centric or owner-absentee? How much cash flow is needed to pay you (the buyer), the debt to buy the business, and still have some funds to put away for a rainy day? These are just a few examples of what you need to know. We’ve worked with thousands of buyers and can help answer all these questions for you. Most buyers don’t buy the first business they review, so keep an open mind when starting the search. The initial buyer packet paperwork will help guide this conversation. Be sure to fill it out completely and accurately.
Understanding your options
There are many ways to buy a business. It’s important to understand each of them, as one may fit your situation better than others. The most common ways include all-cash, SBA loans, conventional loans, using your retirement account, or seller financing. CBA can explain these options along with the pros and cons of each. We also offer a complimentary class each week titled “Buyer 101” which buyers can attend via Zoom and learn about a variety of topics. We show you how businesses are priced, how to make a compelling offer, a crash course on financing, and many other relevant topics.
Having proprietary access to the right people
Having the right relationships in business often results in a better experience, no matter what you’re buying. It’s imperative that a business buyer speaks with the right lenders early. Some banks don’t have the appetite for certain industries, yet are still willing to review a potential deal. This will only waste your time, since they will most likely pass on the deal, or at a minimum, not even offer competitive terms of the loan. Some banks are preferred lenders with the SBA. This means they can review loans in-house and save significant time in the process of buying a business. The Advisors at CBA will help guide you towards the right lending partners to save you time, money, and headaches.
Help you through the approval process
To the best of their ability, banks want to guarantee that they will be paid back. They will require a lot of paperwork, contingencies, and commitments. It’s easy to get stuck at certain points and be left unsure which direction to go. Having someone in your corner along the way can light the path to successfully securing a loan. We are familiar with many loan applications and the required supporting documents. We’ve also helped many buyers develop a business plan and show them how to set up projections for the lender.
Referring you to important third parties
Thinking about using your 401k or retirement plan to buy a business? It’s possible! We have referral relationships with leaders in the ROBS industry. These firms provide faster access to retirement plan funds, have no early distribution taxes or penalties, allow funds to be used to expand the business or provide additional working capital. You can often use up to 100% of existing funds.
We also have key contacts in accounting and tax preparation.
These are just a few of the ways CBA assists buyers with the process.
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