Onward
Did anyone use an ROBS plan instead of an SBA loan?
I have a 401(k) from fifteen years at one company. Has anyone here used it to fund the purchase, and would you do it again?
Financing and SBA
SBA 7(a), seller notes, equity, lenders and what they ask for.
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Request early accessWould you carry a seller note, and for how long?
A buyer has asked me to carry 10% for five years. I'd rather be paid at closing, but I understand it helps the financing. Owners who did this: would you do it again?
As a buyer, a seller note tells me you believe the business will keep paying after you leave. I'd take a slightly higher price with a note over a lower one without.
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How much did your SBA lender want for the equity injection?
I keep hearing 10% but my lender is talking about more because I haven't run a business in this industry. What did yours ask for, and did a seller note count toward it?
Mine accepted a seller note for half of the 10%, on full standby for the first two years. The owner had to agree to the standby in writing, so raise it with the seller early.
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