When you decide to purchase a business you'll be faced with few financing options. It's clear that during the negotiating process you may elect to include some seller financing. Seller financing may be your only option if you're not able to qualify for a business loan. Typically, business deals may be closed slightly faster without the need for financial intermediaries, but is this your best option? Does the deal change and become more profitable to you if it's paid for in full.
Most seller financed deals require a larger down-payment (30 to 50%) with terms for repayment being generally shorter than business loans because after all, the seller wants their money. With SBA Acquisition Financing, your down-payment will likely be no more than 20% and with a 10 to 25 year term of repayment. The long-term benefit is a lower monthly payment conserving needed cash flow during the acquisition or early expansion stages.
There are no prepayment penalties with an SBA acquisition loan (of terms 15 years or less)! Cash flow is important and you can do so much more with it than without it! Diamond Financial adheres to that concern which is why we always include working capital in our total project costs. Not sure if you can qualify for business financing??…. Talk to us or apply and we will let you know quickly. After all, our business is to secure loans for your business. We never charge any upfront fee and we only charge a small fee upon the issuance of a loan commitment.