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 […]
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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 […]
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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 […]
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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. […]
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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 […]
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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, […]
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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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SBA Loan Property Liens – 5 Things To Know

The SBA 7(a) has clearly defined loan property lien requirements. For loans over $350,000 the SBA requires that a lien be placed on available equity of the borrower’s personal real estate including residential and investment property. The SBA does not require lenders to collateralize a loan with personal property if the borrower has less than […]
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How Buyer Loans Impact Sellers

Are you looking to sell your advisory practice? Will your buyer need a loan? The lender your buyer selects (and if a SBA loan is utilized) has several key impacts to sellers. If you are selling we provide free consultation and services to you to help you understand the lending process and how the lender […]
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