Here is a shout out to SBA lenders!
I recently had a buyer looking at a potential restaurant purchase. He really liked it but didn’t think he could pull off the financing. “I don’t think I can do the deal,” he said during our phone conversation.
It was obvious he was very interested in the business and had had success in a similar venture. I suggested he let me make a few calls to see if I could find a way to structure financing that would be satisfactory to him, and he gave me the go ahead.
The first call was to the seller, who agreed to participate in some form of seller financing. Calls two, three, and four were to SBA lenders to see if they would take a look at a proposal. They each said, “Yes.” Next, I created the “Proposed Term Sheet,” which included the seller financing, the amount of cash the buyer would be able to contribute, and the buyer’s resume’ …all sent to the SBA lenders.
Within a few days, two responded with, “Yes, we believe we can make this deal happen.” The buyer now had two lender options that he could work with, supplying more information and going through the necessary steps toward a successful closing.Brokers typically have the knowhow, contacts, and resources to help put transactions together. Buyers should always ask for help and suggestions from them before giving up on a dream purchase!