• Conventional Revolving Bank Credit Lines up to $5,000,000
• Inventory & A/R Financing.
• Business Acquisitions.
• Commercial Real Estate
• Owner Ocupied Properties.
Transaction Specialties:
• Gas Stations
• Marinas
• Restaurants
• Apartment Houses
• Owner Occupied Properties
• Hotels/Motels (Flag & Non Flag)
Refinancing of High Interest Debt:
Loan re-structuring to meet Conventional financing standards
Government sponsored (SBA & USDA) loans
Brokers Protected
Rapt enjoys a solid working relationship with our lenders who are interested in both conventional and SBA type deals. As most lenders are concerned with cash flow and collateral, it is wise to pre-quality both the property offering (and potential buyer/borrower) to determine the amount of financing available. This can also help to determine a “fair market price”, which would be an effective sales tool to sell the business/property.
We are actively seeking new lending opportunities and broker referral arrangements for the small business loan programs we service. Please contact us for a FREE consultation and pre qualification of your listings.
Check List
(Existing Business)
1- Description of Property
2- Appraisal (if available)
3- Environmental Report (if available)
4- Last Three years Financial Statements & Tax Returns (IRS 1120′ s) for existing business.
5- Recent Interim Financial Statement (within 30 days)
6- Personal Financial Statement of Borrower
7- Personal Tax Returns (IRS 1040’s) for each Principal (>20 % ownership) for Last Three Years.
(Existing Business)
1- List of equipment being purchased
2- Appraisal (if available)
3- Three years Financial Statements & Tax Returns (IRS 1120′ s) for existing business.
4- Recent Interim Financial Statement (within 30 days)
5- Personal Financial Statement of Borrower.
6- Personal Tax Returns (IRS 1040’s) for each Principal (>20 % ownership) for Last Three Years.
1- List of assets (property/equipment) being purchased
2- Appraisal (if available)
3- Three years Financial Statements (Projection)
4- Personal Financial Statement of Investor.
5- Personal Tax Returns (IRS 1040’s) for each Principal (>20% ownership) for Last Three years.
6- Personal Investment.
7- Use of Funds Breakdown
8- Total Loan Request.
1- List of assets (equipment/property) being purchased
2- Appraisal (if available)
3- Last Three Years Financial Statement & Tax Returns (IRS 1120’s) for existing business.
4- Recent Interim Financial Statement (within 30 days)
5- Personal Financial Statement of Borrower.
6- Personal Tax Returns (IRS 1040’s) for each Principal (>20 % ownership) for last Three Years.
7- Use of Funds Breakdown
8- Total Loan Request.
9- Buyer Investment.
Funding Uses
In general, lenders do prefer not to lend a lot of money for working capital. Instead funds can be provided for inventory, to pay accounts payable or to repay debt. SBA guidelines allow the lender to consider the total project (including renovations, moving & closing costs) in evaluating the loan application. Consider the following illustration:
Use of Funds | Total Funds | Barrower | Loan Request |
Land & Building Acquisition | $900,000 | $90,000 | $810,000 |
Equipment | $25,000 | $25,000 | |
Inventory | $25,000 | $25,000 | |
Renovations | $100,000 | $15,000 | $85,000 |
Working Capital | $50,000 | $50,000 | |
Closing/Soft Costs | $50,000 | $50,000 | |
Total Project | $1,150,000 | $995,000 | |
Owner Investment | $155,000 |
Lending Criteria
In general, lenders do prefer not to lend a lot of money for working capital. Instead funds can be provided for inventory, to pay accounts payable or to repay debt. SBA guidelines allow the lender to consider the total project (including renovations, moving & closing costs) in evaluating the loan application. Consider the following illustration:
USE of FUNDS:
Provide explanation of what you need the money for. In general lenders prefer to lend for the acquisition of hard assets rather than for working capital. Hard assets include:
1 Land & Building
2 Inventory
3 Machinery & Equipment.
Lenders want to fund business operated by individuals of good character, with a proven track record. If your venture is a start-up, or acquisition provide a brief narrative explaining your academic training & professional (work) experience that will enable you to operate this business successfully.
Please inform us of any credit difficulties at the earliest point in the process.
WHERE:
Provide a brief narrative description of the planned project. Describe where the business operates (city, town & state) whether the property is owned or leased and how many years in existence. Explain how the funding will benefit the business.
It is important to both you & the lender that your project is able to repay the debt. The ability to repay a loan from the business cash flow is the most important issue to most lenders. The easiest deals are those that show historical repayment ability for the proposed debt. For a start-up, or where historical debt repayment is inadequate, proforma (projected) income statements must be submitted. Our staff is available to assist you in this effort.