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Business Lenders...
Posted on 8/23/12 at 10:39 am
Posted on 8/23/12 at 10:39 am
Can anyone recommend a good one in the Baton Rouge area?
I'm new to this and have a lot of questions. Is 20% down pretty much a requirement, or are there gubmit programs for new small business owners (SBA)?
ETA: **corrected title
I'm new to this and have a lot of questions. Is 20% down pretty much a requirement, or are there gubmit programs for new small business owners (SBA)?
ETA: **corrected title
This post was edited on 8/23/12 at 1:51 pm
3
Posted on 8/23/12 at 10:40 am to Slickback
quote:
Commercial Lenders
quote:
small business owners (SBA)?
Different businesses.
Posted on 8/23/12 at 10:42 am to TheHiddenFlask
Educate me. Looking to buy a small business (retail/services).
Any recommendations on who I should seek out in this area?
Any recommendations on who I should seek out in this area?
Posted on 8/23/12 at 10:46 am to Slickback
quote:
Educate me. Looking to buy a small business (retail/services).
Any recommendations on who I should seek out in this area?
Sorry, I wasn't trying to be a jerk. I don't know anything about SBB. I clicked on the thread as I know a lot about commercial lending. I personally know some SBB's, but I couldn't in good faith recommend any of them, as I have never dealt with them in business.
Posted on 8/23/12 at 10:50 am to TheHiddenFlask
I didn't take it that way, and sorry if my response came across that way.
I'm in the early phases of researching what I need and feel a lender would be more effective than the Google machine.
I'm in the early phases of researching what I need and feel a lender would be more effective than the Google machine.
Posted on 8/23/12 at 12:32 pm to Slickback
sounds like you really need a business lender, commercial is usually LARGE companies. I have used a couple around the state, but Campus Federal is the only one i have dealt with in Baton Rouge, they were quick and easy to deal with. Call Ryan @ 225-408-4812, not his department, but he can get you the info and to the right person (last person I used is now in Shreveport).
This post was edited on 8/23/12 at 12:38 pm
Posted on 8/23/12 at 1:50 pm to geauxskeet
Thanks, business lender is what I need. I'll give him a call.
Posted on 8/24/12 at 1:45 pm to Slickback
You're going to need cash and cash reserves to buy a business. Your best option would be to have the seller partially finance the transaction.
Look up business brokers. There are companies that specialize in negotiating the sale of businesses.
A simple Google search reveals tons of companies that will assist in funding the purchase of a business. However, I believe most are going to require that the buyer has a substantial position in the purchase of the business.
Look up business brokers. There are companies that specialize in negotiating the sale of businesses.
A simple Google search reveals tons of companies that will assist in funding the purchase of a business. However, I believe most are going to require that the buyer has a substantial position in the purchase of the business.
This post was edited on 8/24/12 at 1:48 pm
Posted on 8/24/12 at 2:09 pm to VABuckeye
You're likely not going to get a bank loan to purchase a business, period. Especially if you are not already high up in a management position withint that business or have years and years of experience in the industry.
If you're buying the real estate of the business that's easy to finance (with 20% down). Long term asset with long term debt.
If you're buying all the used equipment or receivables of the business, that's a lot harder to finance (short term assets for collateral won't work with long term debt). Given equipment isn't a short term asset usually, but 9 times out of 10 it will be as the resale value of equipment, especially in retail/service, is sold at pennies on the dollar in a foreclosure scenario. Receivables might be there today, but should be collected in less than 90 days so they could dry up very quickly.
The hardest part is financing the intangible value of the business. What the seller's walk away profit is per se. There is no collateral there. Period.
Best bets: what the previous person mentioned (business brokers/hard money lenders). Or, have the seller take back a note and provide seller financing. If you have personal assets you can pledge (ie equity in a home, stock etc) then you can try and go down the regular bank loan path. Otherwise, you are wasting your time.
FWIW - I'm a business banker/commercial lender.
If you're buying the real estate of the business that's easy to finance (with 20% down). Long term asset with long term debt.
If you're buying all the used equipment or receivables of the business, that's a lot harder to finance (short term assets for collateral won't work with long term debt). Given equipment isn't a short term asset usually, but 9 times out of 10 it will be as the resale value of equipment, especially in retail/service, is sold at pennies on the dollar in a foreclosure scenario. Receivables might be there today, but should be collected in less than 90 days so they could dry up very quickly.
The hardest part is financing the intangible value of the business. What the seller's walk away profit is per se. There is no collateral there. Period.
Best bets: what the previous person mentioned (business brokers/hard money lenders). Or, have the seller take back a note and provide seller financing. If you have personal assets you can pledge (ie equity in a home, stock etc) then you can try and go down the regular bank loan path. Otherwise, you are wasting your time.
FWIW - I'm a business banker/commercial lender.
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