Tip #72: Will the company qualify for a business acquisition loan?

Tip 72 - Loan Rejection

Will the company qualify for a business acquisition loan?

  
There are many reasons that purchasers of businesses are turned down for acquisition loans. Oftentimes the price of the business is too high and the cash flow of the business can’t support servicing the debt. Sometimes the assets to be used for collateral are inadequate. But the banks and the SBA look at other criteria such as the credit rating and qualifications of the borrower to manage the business. At the very least, business owners must make sure their company fits all the criteria that banks are looking for in order to find a buyer that will qualify for a loan.

Read about SBA Business Loan Eligibility.