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Financing a Purchase

I'm very interested in purchasing a business I've recently been made aware of, but I'm not sure SBA would back it. The business does about 1.9M in sales a year, and the asking price is 2M. The SBA Adjusted Cash Flow is about 180K a year, but that doesn't include dollars the owner is taking out of the company such as child support, mortgage payments, salary for non-working relatives, etc. If these are included the cash flow is closer to 750k a year. These monies are all verifiable, but the SBA person I spoke to doesn't seem to think they would figure into the cash flow they would base a loan off of. I'd like to put down 10% and the owner will put down 10% - my credit is above 800, and I have experience in this industry - is there any way this could be done outside of SBA? Thanks

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Biz2Credit LLC
New York County, NY


In case you can show another source of income as of now and also you are not going to pay your mortgages ( I am assuming you have no child support) , it will get added back. We do a large no. of SBA deals and all these items are added back.

Also seller note counts for 10% equity participation and rest 10% to 15% can be put down by you.

We at Biz2Credit have over 87 lenders and 140 products to chose from. In case you need more information write to me at

May 13, 2010

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