The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Is there anything a seller to do from a financing standpoint that can potentially line up lenders or sba guara

I see some listing tout SBA pre-approval etc. Wasn't sure if that was helpful and if it was what I had to do.

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (2)
No User Photo

We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539

Aug 9, 2017
No User Photo
The BAF Group LLC

Whether a business has that kind of pre-approval is sometimes, but not always helpful. Saying the business is pre-approved sometimes only means that it has viable tax returns and shows a stable profit history for the past three years. What is quoted as an asking price in an advertisement does not necessarily guarantee that the pre-approval is for the price that is being asked. As an example, we have run into several scenarios where a business the Seller or Broker advertises a price for far, far higher than the SBA pre-approval stipulates. An SBA loan would not be provided at the higher price. And it is not the SBA that is giving the pre-approval - it is the Bank - so if the buyer ultimately goes for a loan of the bank that is different than yours, not only would your pre-approval be ignored, but it could lead to suspicion on the part of the buyer. As Brokers, we estimate asking prices that are extremely close to what the SBA normally approves, but we do not go through a process of attempting to gain a pre-approval, in advance. That is not to say we are right and everyone else is wrong; it is simply a different approach that appears to work for us.

Jan 13, 2016

Start a Discussion