After his offer to acquire a popular restaurant was accepted, the buyer was informed about the benefits of using the exclusive CBI Loans4Biz program to help him obtain financing for the acquisition. Even though many restaurants were struggling due to the effects of the COVID-19 pandemic on their industry which resulted in obstacles to obtaining loans, the buyer first wanted to reach out to a few lenders on his own.
The buyer proceeded to have multiple conversations with several lenders about financing the deal, but the buyer had no success in finding one that would provide a loan for the acquisition. So, he finally decided to participate in the Loans4Biz (L4B) program.
Kelly Tivis, the Loans4Biz Program Administrator, worked with the buyer to prepare all documents typically required by lenders who are interested in financing business acquisitions. His resume, financial statement and all other documents were reviewed and revised as needed. The buyer pursued a unique approach with his business plan which did a beautiful job of presenting his desire to own and operate the business as well as how he was going to be successful doing so – the time spent on preparing the business plan also helped the buyer gain a much better understanding of the business. All documents for the buyer and the seller were gathered and uploaded to a Confidential Deal Room (CDR) for review by interested lenders.
Finding interested lenders in the midst of dealing with COVID-19 was challenging, but Kelly Tivis knew there was a better chance of finding a lender for this particular deal since over 100 lenders participate in the Loans4Biz program. The Loans4Biz process worked and a few lenders presented proposals for the buyer to consider.
The lender that was selected eventually did require some restructuring of the deal, but that lender had offered a very competitive interest rate so the buyer was willing to agree to the new structure and the deal successfully closed. If that lender had not completed the deal, a proposal from another very interested lender would have been pursued as a back-up option if needed.
The Loans4Biz program saves participants time and money by offering the following benefits on most deals:
– 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 presented for consideration
– Thousands of dollars of interest saved over the full term of the loan
– The option of closing quicker when that is a preference
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.
To learn more about the Loans4Biz program, contact Kelly Tivis at 479-770-8989 or email@example.com