Acquisition Financing Guidance in Leander

What financing guidance means here

We are not a bank and we do not lend money. Our job is to help you put together a financing plan a lender will take seriously, and to make sure the business you want can carry the debt you plan to put on it.

Most small business purchases are paid for with some mix of three things: a bank loan, often SBA-backed, a note the seller agrees to carry, and the buyer's own cash. Getting that mix right is often the difference between a deal that closes and one that stalls in underwriting. Before we start, we tell you in writing what we will help with and what we will not, so there are no surprises later.

Buyers in Leander, Cedar Park and Round Rock reach us at our office or by phone and video. You do not need a deal picked out yet to start the conversation.

What we help you with

A realistic budget

We look at the cash you can put in and what a lender is likely to want from you. That gives you a purchase range to shop in, instead of guessing.

Debt coverage check

Lenders want to see that the business earns enough to pay the loan with room to spare. We run the numbers on a target business so you know early if the cash flow supports the price.

Seller note terms

A seller who carries part of the price shows a lender they believe in the business. We help you propose terms that are fair to both sides, including payment schedule and how the note sits behind the bank loan.

Lender package

Banks ask for a lot: tax returns, financial statements, a personal financial statement, a resume and a short business plan. We help you gather it in the order lenders expect so the file does not bounce back.

Lender introductions

We can point you to lenders who regularly finance business acquisitions. You choose who to work with and you sign with them directly.

Signs you could use help with financing

• You found a business but not a lender

  You like a listing but have no idea if a bank will fund it. A short talk can tell you where you stand before you make an offer.

• Your bank said no

  A general bank may not do acquisition loans at all. That does not always mean the deal is dead. It may mean you talked to the wrong lender or the structure needs work.

• The numbers feel tight

  If loan payments would eat most of the profit, the price, the down payment or the seller note may need to change.

• You are unsure about a personal guarantee

  Most acquisition lenders ask the buyer to personally guarantee the loan. We explain what that means in plain words so you go in with clear eyes.

How it works, step by step

1. 1

   First call

   You tell us what kind of business you want, roughly what you can invest and your work background. We tell you honestly what is realistic.

2. 2

   Written scope

   We put in writing what we will help with and what each party is responsible for. You see it before any work starts.

3. 3

   Deal review

   Once you have a target, we look at its earnings, add-backs and any working capital or equipment needs. Then we sketch out a loan, seller note and cash split that the cash flow can support.

4. 4

   Lender file and follow-through

   We help you build the lender package and answer underwriter questions. We stay with it through appraisal, approval and closing so details do not slip.

What moves the cost of financing a deal

The cost of borrowing to buy a business is not one number. It depends on the deal, the lender and you. We lay out these factors in writing early so you can compare options with no surprise add-ons late in the process.

Size of the loan

A larger loan means more interest over time and often larger fees. Putting more cash in or using a seller note can shrink the bank's share.

Your down payment

How much you bring changes the loan amount and how lenders view the risk. Some lenders allow part of the down payment to come from a seller note.

Property included in the purchase

When you also take over the building, the loan grows and the repayment term can stretch longer. Lenders usually order an appraisal and an environmental review on the property. Our Business and Property Sales page explains how those deals run.

Your experience and credit

Lenders weigh your industry or management background along with your credit. A stronger profile can mean better terms.

Third-party costs

Expect lender fees, business valuation, appraisals, legal review and closing costs. We help you list them before you sign so you budget for them.