[skideeppow]

Hi,
I have a merchant who owns a sports consignment shop and is trying to purchase a 7000-foot retail skli shopwith all its inventory. He would be getting the lease assigned to him at the current rate.

The consignment shop makes around $35k a month, but he has an MCA out on that with Rapid.

Any other creative ideas how he might be able to leverage the new business to get cash for the purchase?

The $250k is well below the current inventory value. I have requested the inventory list and financials for the business to be purchased.

Let me know if you have any ideas.

Thanks

[Olderguy]

I have a SBA business acquisition lender that can do 100% LTV.

Maybe too small but would need to see financials for both businesses, PFS on buyer, Fico, loan app, bank statements on business.

Another option - does buyer have any assets we could do asset based lending? Property, equpment, etc?

[skideeppow]

I have a SBA business acquisition lender that can do 100% LTV.

Maybe too small but would need to see financials for both businesses, PFS on buyer, Fico, loan app, bank statements on business.

Another option - does buyer have any assets we could do asset based lending? Property, equpment, etc?

He does not have any assets. I told him the SBA would be his best bet. But trying to see if there is anything else out there.

[Olderguy]

He does not have any assets. I told him the SBA would be his best bet. But trying to see if there is anything else out there.

You can send me the package, financials and tax returns on both companies, loan app, bank statements, PFS, proposed purchase agreement, etc. I can have my guy look at it.

[Olderguy]

Here are some parameters for business acquisition:

Assuming the deal debt services, can finance most CRE purchases at 100% LTV on 7a up to 5MM. They lend based on Prime, but can get aggressive on clean or competitive deals. Have found that a lot of customers will forego a lower rate in order to save on the injection. Rates are case by case, typically 1.0 - 1.5 over Prime, but can get as low as Prime minus 1.50 for the right deal/situation. Have risk-based pricing.

Can potentially lend 100% on business acquisitions if the buyer is in the same industry, i.e. one company buying a competitor. Otherwise, 90-95% is typical (subject to cash flow), and can get creative on seller notes, gift funds, and outside investors. Rates are generally 1.50 - 2.00 over Prime, lower on exception.

Max loan amount is 9MM on business acquisitions, including 5MM SBA and 4MM conventional. Have the ability to lend fully unsecured where necessary.

Closings are 45-60 days, and this lender's process is extremely efficient. Loans are typically approved within two weeks.

Ground up construction is fine, including TI's for lessees.

Loan amount minimum is 500k for acquisitions/refinance/construction...but he'll look at anything....and maybe do waiver.