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

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MyDataMyChoice
Valued Contributor

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

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    



Message 1 of 4
3 REPLIES 3
redpat
Senior Contributor

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

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.

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Message 2 of 4
Anonymous
Not applicable

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

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.

Message 3 of 4
Anonymous
Not applicable

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

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

Message 4 of 4
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