Business Only Financing

Business Only Loan Program Highlights For Gas Stations and Convenience Stores

Business only transactions are for operating who are purchasing or refinancing the actual value or goodwill of the business with no real estate involved.  Business only financing may involve the purchase of machinery and equipment.  This is usually done with SBA loans. Even though the loan amounts are typically smaller than those backed by real estate, they usually require better cash flow and better qualified borrowers because of higher default rates due to the lack of collateral.

Types Of Financing:

Acquisition (Going concern and equipment)
Leasehold Improvements
Machinery And Equipment
Working Capital

Loan Amounts:

$250,000 – $5,000,000

Terms:

5,7, or 10 Years for Good Will, Machinery & Equipment or Working Capital

Interest Rate:

Prime + 1.75% – 2.75%

Loan To Value:

40 – 70%

Prepayment Penalties:

1st Year 5%, 2nd Year 3%, 3rd Year 1%

Fees:

None To Minimal Lender Fees
Due Diligence Deposit
Customary Closing Costs
Construction Fee, if applicable, to offset monitoring costs
SBA Charges A Fee Of Approximately 3.5% (depending on loan amount and percentage of guarantee, usually 80%)

Eligibility:

Owner Occupied Small Business
US Citizen Or Permanent Resident Alien Status
Good Credit / Character
Management Experience In Industry Or Related Industry
Reasonable Financial Statement Or Credible Projections
Business Must Meet SBA Size Standards

Collateral:

First lien on machinery, equipment and inventory.                                                                   Additional outside collateral may be necessary if leasehold improvements are substantial. 

Underwriting Timeline:

Loan decision usually made within ten days of receipt of all requested documentation.