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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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Answers (2)
Terri Bollman-Wyzkoski
MainStreet Bank
Sr. Commercial Lender
Fairfax County, VA


The SBA lender with whom you talked didn't know what she was talking about. Of course, it is necessary to add back non-recurring expenses to get to actual cash flow. I've been a lender for 15 years, and now I find lenders for my clients. Depending on the type of business, 20% would be the absolutely minimum. You must remember that, although the SBA has its own guidelines, the lender is the one making the loan, so their credit culture is the obstacle you must get past.

If you'd like a professional to assist with consulting you through the finance process, including obtaining a commitment from a lender, perhaps you'll consider calling us. We're a commercial loan broker firm that provides packaging and placement of loans on behalf of our clients nationwide. We are staffed with former commercial lenders who are well-seasoned and understand how to structure loan requests to garner the attention of a bank/lender, and obtain the most favorable terms and conditions on your behalf.

BLS also enjoys a network of banks and other lenders nationwide, including banks that do nothing but SBA loans. We know their cultures, their interest (or non-interest) in particular industries, and their specific risk appetite. As a result, we are able to more quickly and efficiently identify the most appropriate lender. Give us a call and let's discuss your transaction in more detail. I'll be able to tell you immediately if we're able to provide you with financing on your terms.

I look forward to hearing from you.

Kindest regards,
Terri B. Wyzkoski
Managing Member
Business Lending Solutions LLC
11654 Plaza America Drive #363
Reston, VA 20191
Direct: (703) 655-9939
Skype: BLS_TerriWyzkoski
Linked-In Profile:
Your Financial Solutions Provider.

May 27, 2010
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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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