Qualify At About 6x To 7x Your Revenue For SBA Acquisition Loans

Here are general rule of thumbs provided by AdvisorLoans that will ballpark the amount of an SBA acquisition loan advisors can typically qualify for. These examples apply for borrowers with good credit, a predominately recurring revenue model, 25% seller financing, and a debt service coverage ratio (DSCR) of at least 1.25 for the combined practices. The SBA […]

Qualify For 7x Annual Debt Payment

While the 6x to 7x buyer revenue get’s you in the ballpark of the SBA acquisition loan amount a borrower can qualify for, it is the combined buyer and seller practice cash flow that drills down your loan preapproval ballpark more precisely. This is how AdvisorLoans does a quick and dirty calculation of your debt service coverage […]

Get Out Of My Personal Space

Each person has their own personal portable air bubble we consider as our personal space. Children learn this “spacing” by age 12 and can be broken down into four zone/spacing distances. Intimate zone. Between 6 and 18 inches. Reserved for lovers, parents, spouse, children, close friends, relatives and pets. Personal zone. Between 18 inches and […]

5 Things To Do When First Considering Selling Your Practice

Establish your timeline Are you looking to sell within a year or over the next few? The longer the horizon the more choices you’ll have and the more you can monetize and provide for a smoother transition for your clients. Estimate your value Don’t assume the ratio your friend got for his practice will be […]

FICO Score Minimums For Business Loans

Lenders use FICO credit scores for not only your mortgages but for business loans as well. Your score range possible is between 300 and 850 score. A 680 score is considered good credit and 700 to 850 is considered very good to excellent. The SBA lenders AdvisorLoans works with prefer a 640 minimum score and […]

FICO’s 5 Components Of Your Credit Score

Payment history = 35% Credit utilization = 30% Length of credit history = 15% New credit = 10% Credit mix = 10% The FICO score does not know your age, gender, marital status or race and neither your job status or income have an impact on your score. The two easiest and biggest contributing factors […]

FICO Knows A Lot About You But What Do You Know About FICO?

There are 4 times as many FICO scores sold each year than the number of hamburgers McDonalds sells worldwide in a year. There are more FICO scores sold each day than the number of cups of coffee Starbucks sells worldwide in a day. 90% of all lending decisions in the U.S. rely on FICO scores. […]

Advisorbox is Expanding our “Buyer Listing”

With a strong uptick in the seller and succession advisors we are working with, we are increasing the “Buyer Listing” we internally use to introduce to advisors we are working with who are looking to sell out or sell over time. It’s free to be on our Buyer List although it does take a small time investment […]

Business Loan Rates Are Increasing

Wall Street Prime rate moves to 4% Cost of capital for business loans is going up A year ago WSP was 3.5%, a month ago 3.75%, and now it’s at 4% WSP is expected to rise again this year (perhaps 2 more increases) While the standard has been getting SBA loan rates in the 5%s, […]

Increased Cost Of Capital Consequences

There is no doubt the cost of capital for business loans is increasing. We don’t see the consequences of the recent hike and the expected additional two hikes in 2017 to be considered too severe by most advisors focused on inorganic growth through acquisitions. Advisors who have existing SBA or other variable rate loans are […]

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