As a self-funded searcher, your time is incredibly valuable.
By the time that you have a deal under LOI, significant time and energy has gone into the search process including sourcing the opportunity, and negotiating the LOI with the seller. 2/x
So where are these banks that are approving these SBA loans, and do all of them require 1.50x DSCR? 3/x
➡️ Every bank has its own unique credit box with the types of deals it wants to approve & ones that it doesn't
➡️ Your time is incredibly valuable
➡️ The highest & best use of your time as a self-funded searcher is not negotiating debt terms. 4/x
Within the last 2 weeks, @PIONEERCAPADV has closed $5,196,000 of SBA 7a loans.
Within the next 2 weeks, we will close another $5.2 million of SBA 7a loans. 5/x
Rather than going through the process on your own, we are here to help ensure that you obtain the best financing terms for your acquisition with a lender that offers "Certainty To Close." 6/x
We can also help identifying individuals and vendors that will be good additions to your deal team based on your type of financing. 7/x
If you're a self-funded searcher or entrepreneur that is interested in connecting, please feel welcome to put a time down to connect 👇 8/x
➡️ 3 year projection & assumptions template
➡️ business plan template with guidance on how to draft a solid business plan
➡️ Waterfall model for modeling MOIC and IRR. 9/x
Off Market Deals
➡️ Connect with @stephenolmon & @mrtrash757 who run an off-market deal sourcing business to help SMB buyers with finding a target ( withcurators.com )
As an SMB searcher, there are several key variables that are critical to closing on a business acquisition.
One of these variables is having the necessary capital for the down payment.
In this thread, I will explain what a seller note on full standby is, and & how it can help.
1 - The Set Up & Some Basic Requirements:
➡️ You have found a business that you want to
purchase
➡️ The business cash flows at the appropriate debt service coverage threshold with the amount of bank financing and amortizing seller financing that you are modeling
2 - SBA's Equity Injection Requirement
➡️For a business acquisition (change of ownership), SBA requires a 10% equity injection that is based on the total uses of funds
At @PIONEERCAPADV we recently closed a ~ $2.6 million SBA 7a loan for a self-funded searcher acquiring a business with the below mentioned debt service coverage figures.
Some lenders would stray away from this deal over DSCR not exceeding 1.50x for the last 3 years. 1/x
Within 2 weeks of engagement, we obtained 2 term sheets for the searcher from top SBA lenders offering Certainty To Close.
The searcher is now a small business owner pursuing the Americqn Dream 🇺🇲🦅🗽. 2/x
If you're an entrepreneur or self-funded searcher pursuing an acquisition that involves SBA financing, we can accelerate the process for you by knowing where to go with your deal to obtain the best financing terms for your acquisition. 3/x
@PIONEERCAPADV has recently partnered with a trusted cloud technology advisor, @techsupro who has a combined 40 years of implementing technology solutions for many different industries. 1/x
@techsupro & @PIONEERCAPADV share alignment in that we both are on a mission to help small business entrepreneurs achieve financial prosperity. 2/x
Together we are providing small business entrepreneurs with the opportunity to achieve success by keeping more cash in their pockets whether they are acquiring a business, in need of working capital, or purchasing affordable technology to run their business. 3/x
Working with @PIONEERCAPADV, the searcher obtained multiple financing options from top SBA lender banks, and ultimately chose one that offered a combination of cash to the balance sheet at closing with an SBA Express Line of Credit. 2/x