R. Mohl, PC Finding the Right Financing for Small Businesses

Interview Questions

Borrower Interview Questions

Funding Brokers of Scottsdale Inc
  • 1 How and why did you decide to buy this business?
  • 2 What have you done in your past work experience that shows you are able to be successful at owning this business?
  • 3 Are you planning to make any changes in the business? Why?
  • 4 How do you know the employees will stay on and work for you?
  • 5 How do you know the customers will continue to do business with you as new management?
  • 6 Are the business sales seasonal?
  • 7 Review the total project cost with the borrower to make sure it is correct.
  • 8 Is working capital sufficient? How do you know?
  • 9 Why is the seller selling the business?
  • 10 How was the purchase price determined?
  • 11 Is the inventory not outdated? How do you know?
  • 12 Where is your injection coming from? How was the money accumulated?
  • 13 Is the equipment in good condition? Will you need to buy more?
  • 14 Are all the Account Receivables collectible?
  • 15 Who is your competition and how will you maintain and increase market share?
  • 16 What are the terms of your lease?
  • 17 Who and what percentage are the top 3 customers of the last full year total sales? If they represent greater than 10% of the total sales you need to ask the following:
  • 18 How long has the customer been doing business with the operating entity?
  • 19 What is the revenue concentration trend year over year for each of the top 3 customers?
  • 20 How easy is it for a customer to move to a competitor?
  • 21 Are there any contracts in place?
  • 22 What is the borrower’s plan to retain these customers? What happens if these customers are lost?
  • 23 Do you need a license to operate this business? If yes, will you have the license when you purchase this business in your name.