It is very time-consuming to sell a business, as you need to go through a number of steps. You have to talk to your potential buyers and identify their financial ability to close the deal. However, to a business broker or a business seller, the most important task is to make the business SBA pre-qualified for business purchase financing. While you are going to put your business on sale, you must not overlook this step.
Know the importance of SBA pre-qualification to sell your business
Now, as one of the business brokers or business owners, you can claim that buyers have the responsibility of dealing with everything related to financing. The question is why you should do it from your side. You know that pre-qualification can cause a delay to the overall selling process. Moreover, the buyers may not be able to identify the right lender. With pre-qualification, you can save valuable time, and there is no chance to miss out potential buyers, who have interest to acquire the business.
By having the SBA loan pre-qualification notice, you will get several advantages for your business selling process.
- The potential buyers, looking for financing options, will be able to cash out the seller.
- The buyers will not have the loan, focusing on your tax information and financial status.
Before dealing with the negotiation process, the buyers need to identify your options for structuring the deal. Moreover, you can find whether your business selling price rate is close to the estimation of different SBA loan providers. The lenders always make sure that there is a perfect ratio of your business selling rate and their loan amount.
What do you need for pre-qualification?
It is very easy to get your business SBA loan pre-qualified.
- Balance sheet, Profit & Loss Statement and tax returns of the past 3 years- You have to make these documents ready and let the lenders deal with their calculation.
- The location details of your business
- The type of your business and the related industry
- How much capital is available to you?
- A rough estimate of price at which you are selling the business
- Your present credit scores
- The time frame to sell the business
- The presence of any financial issue in the past (bankruptcy), your business partners, contracts for negotiation of business deals
Later, the lenders also need to focus on some other important factors, including the credit status of the buyers, their work experience, collateral and down payment.
Thus, it is very easy to go through a process for pre-qualification of your business for SBA loan. By undergoing this process, you can prevent the buyer from taking too much time for financing. To keep up the progress of the deal, you have to make the best efforts.
You can now find out the most reliable lenders for pre-qualifying the loan for your business for sale. The lenders will check out the documents and send you the pre-qualification notice within a short time.