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Would financing a deal like this be completely out of the question in today's market?

I'd like to purchase a free-standing auto lube and carwash business. The property itself has been appraised at just over 2 million, the revenue is about 950,000k and the cash flow is about 500,000k. The asking price is 2.5 million including about 750,000k in inventory and FF&E. I can put down about 10%, and the owner is willing to put in 10% - would it be crazy to think a bank or third party lender would finance this? I have 800 credit, no other debit other than my mortgage, and extensive operations experience. Thank you

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Answers (3)
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Biz2Credit LLC
New York County, NY

Jeff,

Since the deal involves property and assuming it has been in existence for more than 2 years, you can qualify for USd2 million under SBA 7 ( a) program.

Biz2Credit have over 75 banks and 130 products to match your varied business credit needs across the country. You can fill out a free loan application on www.biz2credit.com and see your options and decide to work with lenders either on your own or through a dedicated case manager from Biz2Credit at a low monthly cost. Once you get matched with a lender, you can use the document management system to upload and maintain all the documents , share it with lenders and other partners you work with. Also being a registered member helps you to get free updates on new lenders ,lending product and tools to build and manage your business credit from our partner, Dun & Bradstreet.

Apr 2, 2010
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I think you got a real shot at it. depends on the lender and their criteria. You are way better than some of the questions I see here where they have no money, no experience, no credit and no chance.. btw, it is also my understanding that credit scores mean less now than they did before (up to a certain point or DOWN to a certain point to be more correct.) It's all about equity and financials and what you have in those respects.

Apr 1, 2010
Buy-a- Company

Not out of the question, but you may have to work to get a deal like this financed. When was the property appraisal done? Time is of the essence, as commercial real estate is tanking, and financing is drying up.

Is there a mortgage currently in place on the property? What is the balance?

Apr 1, 2010

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