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  1. #1

    Business Acquisition loan 480k

    Good Morning DF

    Stuck on a deal so I figured I'd throw it out here.

    I have a client that is trying to buy a testing laboratory. Asking price is $480,000. The borrower sold his old lab about 2 years ago for quite a profit but wants to get back in his industry. SBA was killed for the lab also being sold 8 months ago to a different company, and now its being sold again (regulation has changed about owning testing facilities and treatment centers.) Borrower Liquidity is north of 1M. Looking for a lender that would do an amortized product, prepayment penalties are fine.

    In summation Problems with this deal

    Frequency of times this lab has been sold in the past year
    Borrower does not have an operating business (does have a corp set up for the purchase though)
    No equity in property for this transaction

    Pro's of this deal

    Good Liquidity
    780 Credit score
    Industry Experience
    Borrower has been moving testing accounts to the lab already, there are over 400k in receivables sitting in the account at time of purchase
    Seller and Purchaser have a strong business relationship.

    If a business acquisition loan strikes anyone fancy, shoot me a DM.

  2. #2
    Senior Member Reputation points: 12169
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    DM'd you.

  3. #3
    Senior Member Reputation points: 54975
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    London tea party - love the name !
    Marcus Clapman | Business Development | Cresthill Capital
    (High Commissions Payout Group)
    覧覧覧覧覧覧覧覧覧覧覧覧覧
    Tel: 917-521-6528 | Fax: 212.671.1473
    Email: bizdev@cresthillcapital.com
    http://www.cresthillcapital.com

  4. #4
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    How much can he put down?

  5. #5
    up to 20%, only real reason for this loan is retaining liquidity.

  6. #6
    Senior Member Reputation points: 11375
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    Quote Originally Posted by LondonTeaParty View Post
    Good Morning DF

    Stuck on a deal so I figured I'd throw it out here.

    I have a client that is trying to buy a testing laboratory. Asking price is $480,000. The borrower sold his old lab about 2 years ago for quite a profit but wants to get back in his industry. SBA was killed for the lab also being sold 8 months ago to a different company, and now its being sold again (regulation has changed about owning testing facilities and treatment centers.) Borrower Liquidity is north of 1M. Looking for a lender that would do an amortized product, prepayment penalties are fine.

    In summation Problems with this deal

    Frequency of times this lab has been sold in the past year
    Borrower does not have an operating business (does have a corp set up for the purchase though)
    No equity in property for this transaction

    Pro's of this deal

    Good Liquidity
    780 Credit score
    Industry Experience
    Borrower has been moving testing accounts to the lab already, there are over 400k in receivables sitting in the account at time of purchase
    Seller and Purchaser have a strong business relationship.

    If a business acquisition loan strikes anyone fancy, shoot me a DM.
    Transactions like this I usually shoot to NewTek or Commercial Finance Partners to see if they would take it on.

    Hope that helps.

  7. #7
    Quote Originally Posted by rdgllc View Post
    Transactions like this I usually shoot to NewTek or Commercial Finance Partners to see if they would take it on.

    Hope that helps.
    How has your experience with Commercial Finance Partners been? They don't appear to be a direct lender.

  8. #8
    Senior Member Reputation points: 68233
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    Quote Originally Posted by bmewes View Post
    How has your experience with Commercial Finance Partners been? They don't appear to be a direct lender.
    They aren't- unless you seek a factoring company..

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