SB Informer
Wednesday, December 20, 2006; 04:14 AM
Last week the Small Business Association (SBA) released a study on small business loans. In June 2004 and June 2005 the number and the dollar amounts of small business loans rose 25 percent. Businesses have more outstanding debt, especially the smallest businesses (under $100,000). The figures accounted for all commercial lending institutions, not just SBA loans. Much of the debt was on credit cards.
Access to credit is critical for buying a small business. You'll need
capital to buy the business, hire employees, maintain inventory, and
fund future growth.
A credit card is the most expensive type of credit and carries
unnecessary risk. If you use your personal credit you may not have
enough left for personal emergencies. This can jeopardize your personal
and business stability. If the business fails, you can lose everything.
You will have to pay back the loan and lose personal as well as
business assets.
Most buyers require some kind of business purchase financing.
BizBuyFinancing.com specializes in larger SBA loans (amounts between
$400,000 and $5,000,000). BizBuyFinancing educates and guides buyers
through the process of applying for and obtaining an SBA loan.
The SBA does not allow credit cards or borrowed money as down payment
on an SBA loan. Too much credit card debt can raise your debt-to-income
ratio too high, and jeopardize your chance of getting a loan. Instead,
structure the loan so you have adequate working capital.
Buyers often go directly to a lender for a small business loan. This is a mistake, as 70% will be denied.
"Small business buyers often choose the wrong lenders for the type of
business they want to buy. They may not understand or appreciate how
important it is that the loan is structured right. They don't get
enough support and direction during the loan process," says Peter
Siegel, owner of BizBuyFinancing.com and author of the book Businesses for Sale - How to Buy or Sell a Small Business.
While most people are aware of the SBA, they may not know the critical
details of how to get SBA loan financing. Each bank has their own
preferences and criteria for approving or denying SBA loan
applications. Buyers are usually not aware of the criteria and the
requirements change frequently. BizBuyFinancing.com has long working
relationships with SBA lenders. As a result, 90% of potential borrowers
who use BizBuyFinancing get approved for their SBA loans.
BizBuyFinancing Business for Sale Online Academy offers free weekly workshops to help potential business buyers prepare to get SBA financing quickly and efficiently.
Find out how to finance your small business purchase without
utilitizing risky credit. To see the schedule of live webinars, go to www.BizBuyFinancing.com/education. When it's time for the webinar to start, click the "Join This Session Now!" button.
About BizBuyFinancing
Established in 1991, BizBuyFinancing specializes in obtaining SBA Loans
& Conventional financing nationwide for the purchase of small to
mid-sized businesses. Loan sizes range from $400K to $5M. More SBA loan
tips and information can be read on the Business Finance Blog at www.BizBuyFinancing.com/blog.
BizBuyFinancing holds weekly webinars to help educate business buyers
in the successful completion of an SBA loan. The webinars are free and
open to the first 40 people who join the call.
Other News by This Company Free Webinar: "How to Get a Small Business Loan" on Wednesday July 26 hosted by BizBuyFinancing.com - July 19, 2006 |