What Will the Bank be Looking for from a Seller When a Buyer is Getting an SBA Loan to Buy My Business?
If you are selling your business, your buyer may be interested in taking out a loan. It isn’t uncommon for loan providers to want to better understand you as the seller when granting approval or denial to your buyer. This may seem odd, but it is a common practice for business brokers and banks when it comes to SBA business loans. Before feeling insecure, read on to better understand how SBA business loans are common and can help everyone involved.
SBA business loans don’t work like other common loans, such as home loans or auto loans. With an SBA business loan, banks must approve both the buyer and the business itself. Banks will ask the seller to provide “at least three years of business tax returns, three years of profit and loss statements, a copy of the lease, interim profit and loss statement and balance sheet,” according to Biz Ben.
With this information, banks will determine if your business qualifies for their SBA business loan and then can qualify the buyer. Banks want to be sure the buyer can derive enough income from the business to make payments on their SBA business loan, while also allowing the business to thrive.
If you’re selling your business, don’t be alarmed when a bank asks for in-depth information about your business. At Hallmark Business Brokers, Inc., we work with buyers and sellers to help you through the buying and selling process with ease. For more information on our services, go ahead and give us a call at 941-445-4726 or visit us at 230 S. Tamiami Trail Suite 2 in Venice, Florida, today! We look forward to working with you.