topic Re: Any Business Loans Lend on PROJECTED Cash Flow from business operations? in Business Credit

Any Business Loans Lend on PROJECTED Cash Flow from business operations?

MyDataMyChoice — Fri, 07 Sep 2018 02:15:20 GMT

I was looking at a 7A Loan

The maximum is 5 Million

Business Currently has aprox 1 Million in revenue - and has a building assessed at about 5 million. Looking to buy the building and takeover the business with a new business plan. Personal income is under 100K - was hoping to look at options or hear of some banks that lend based on BUSINESS cash flow with anticipated changes the cash flow will increase 5X

Re: Any Business Loans Lend on PROJECTED Cash Flow from business operations?

redpat — Fri, 07 Sep 2018 09:26:54 GMT

Yes they do. Contact your commercial bank. You will need projected financial statements (balance sheets, income statements & cashflows) with notes and assumptions for a 3 year period, along w/ 3 yrs of business and individual tax returns and a personal financial statement. Contact your accountant and they should be able to walk you through this process and put a financing package together for you.

Re: Any Business Loans Lend on PROJECTED Cash Flow from business operations?

Anonymous — Fri, 07 Sep 2018 15:57:06 GMT

The SBA will for sure.

SBA loans are pretty easy to get for commercial property. All you need is a debt/cash flow ratio of 1.10 - 1.20 depending on the bank.

So for simple numbers, if your yearly commercial mortage + taxes + insurance wouldn't be $100,000 they'll want to see $110,000 - $120,000 in EBITAR. The R in EBITAR is the current rent you are paying.

Re: Any Business Loans Lend on PROJECTED Cash Flow from business operations?

Anonymous — Fri, 07 Sep 2018 15:57:57 GMT

Also, the SBA 504 is much better for commercial real estate.