- Extensive lender research is necessary and time consuming to get the best deal on a loan
Thanks to AdvisorLoans, this is a myth. Now, advisors can let AdvisorLoans do the research and heavy lifting, saving you time, money and headaches.
- Lenders want my house as collateral
We work with non-SBA banks offering cash flow loans without taking a lien on your property. For loans over $350,000 the SBA requires that a lien be placed on a property you have 25% or more equity in. To avoid this, you take a HELOC out before you submit your financial package. The SBA looks at the HELOC available amount as debt even if you don’t draw down on it, bringing you below the 25% line.
- Lenders want my spouse to co-sign
The non-SBA loans we have only require those with 20% or more ownership to be on the loan. If your spouse doesn’t own 20% or more of your business than no requirement. If your spouse owns 20% or more of the “Small Business Applicant” the SBA instructs lenders to consider taking jointly owned investment or residential property as collateral.
- It will take forever to get funded
Advisors know how to plan ahead; it’s a big part of what you do as an advisor. Our non-SBA lending can be funded in a few weeks. For SBA loans we can get a term sheet to you in typically a day after receiving your financial package. Acquisitions loans typically take 4 weeks to funding from the time you execute the term sheet. Working capital SBA loans typically funded in 3 weeks.
- I will be required to get a valuation on the business being acquired
Our non-SBA acquisition loans require a third party valuation for loans over $500K. The SBA requires a third party valuation of the purchased practice if the loan is over $250K. Most third party valuation firms, which qualify for lenders, cost from $800 to $1500 on average.
- All SBA lenders are the same
Not true. While the SBA has their rules and criteria, many banks also have their internal rules and criteria on top of what the SBA requires. For example, one SBA lender may require a 1.75 debt service coverage ratio even though the SBA will allow a 1.15 ratio. Not all lenders, including SBA lenders, have the same rates, costs, qualifying criteria, speed of process, customer service level, flexibility, and programs. This is why AdvisorLoans has a network of SBA preferred lenders at all ranges of the spectrum.
- I can keep the seller on as an employee years after the sale
For our non-SBA lenders they prefer the seller stay on for multiple years after the sale. However, the SBA requires that the seller cannot stay on longer than 12 months as either an officer, director, stockholder, or key employee.
- It’s impossible to find a lender that really understands my advisory business
While it is true that most lenders do not know the difference between GDC and CRD, AdvisorLoans bridges the gap. We exclusively serve advisors and have partnered with a network of lenders who are eager to lend to advisors with our support.
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