We’ve closed several commitments for lines of credit, term loans and mortgage loans for equipment and real estate. When reviewing your term sheets or commitment letters, after you go through the borrower, loan amount, rate and fees, collateral and guarantor section, you’ll end up at a section called covenants.
I have several clients that are involved in business acquisitions. With a sluggish economy, many are attracted to the opportunity to acquire business versus grow organically. If you’re deciding to buy a company, here are 3 things you must know about financing the acquisition.
Two things have become increasingly apparent to me. If you're a big company, you have good access to capital and can find the funding needed to finance your business. Small companies don't have that access to capital and finding funding is difficult. Here's why:
The baby boomer generation is retiring and those who are business owners are selling their businesses. So, where do you start? How much do you pay for the business? What's it worth? How do I get if financed? Depending on your situation, you may only buy and sell one business in your lifetime, so you want to do it right.
Securing financing for your business can be challenging. Whether you're borrowing money for the first time to start your business or you're looking for a loan to grow, the lending criteria banks use can be rigorous. It's important to know what are the must haves that a bank is looking for to approve your loan. Here are the top 4: