The couple had years of experience as teachers, but they had a dream of owning their own business. The husband would resign from his position at the end of the school year while the wife continued her teaching career. While searching for a business to acquire, they found one listed by CBI that was a good match for them in many ways.
After this couple made an offer on the business and the offer was accepted, they decided to participate in the Loans4Biz (L4B) program – a service provided by CBI’s Management Team to buyers/borrowers who need to obtain financing for acquisitions.
Kelly Tivis, the Loans4Biz Program Administrator, worked with the couple to prepare all documents typically required by lenders who are interested in financing business acquisitions. Resume, financial statement, business plan and all other documents were reviewed and revised as needed. Then all documents for the buyer and the seller were gathered and uploaded to a Confidential Deal Room (CDR) for review by interested lenders. A lender, who really liked the deal and the couple, proposed a financing option and the couple made a decision to work with this lender to obtain a loan for the acquisition.
Since the couple did not have enough cash on hand to make the required down payment, the option of obtaining additional funds through a home equity loan was presented to them and they decided to move forward on that option. This option was possible as long as they had sufficient income from a source other than the business they were acquiring because the payment on the home equity loan had to come from the other source.
By the end of the school year and after working through a few additional challenges, the deal had closed and the couple began their venture in business ownership. A few years later, this same couple was given the opportunity to grow by acquiring another business listed by CBI. They decided it was a good opportunity so they moved forward on another acquisition. Kelly Tivis was able to assist them once again as they navigated the process of assuming the seller’s loan on that business.
The Loans4Biz program saves participants time and money by offering the following benefits:
– Assistance with gathering and completion of documents required by most lenders
– Initial communication with all lenders managed by the Loans4Biz program manager
– Much better chance of finding a lender who is interested in providing a loan
– A number of financing options and scenarios presented for consideration
– Thousands of dollars of interest saved over the full term of the loan Although the Loans4Biz program was created to assist buyers of businesses listed by CBI, the benefits of using the Loans4Biz program are available to anyone who needs assistance with financing…whether or not you are buying a business listed by CBI.