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

Pre-Qualification Needs

Pre-Qualification Needs List

  • 3 years of business taxes
  • 3 years personal taxes (tracking business income through)
  • Year to date financials
  • Cash flow reconstruction for 3 years
  • Equipment list/fair market value
  • Inventory
  • Description of land and building-sq. feet, type of building, plat numbers
  • Estimate or comps on land and building value-assessors statements
  • Any environmental problems or concerns that should be noted
  • Any pending lawsuits or litigation in process or pending
  • Description of any licenses or permits needed to run business
  • Any major changes to business or property within past 3 years
  • Any anticipated changes in business or area that will have impact on worth
  • Any existing contracts or leases in place or anticipated
  • History of business-general description including product, typical customers, pricing, etc

If you have a draft of a profile, include it. Any pictures, advertising, pamphlets or description of the business and property will help.

The object is to provide lenders initially with a one page description that summarizes the project. Based on the response, more information may be provided. If total confidentiality is a concern, the name and exact location will be omitted. Numbers provided will be extracted from the taxes and adjusted per business broker’s advice concerning add backs and other considerations.

The goal is to get information concerning what types of financing at what probable rates are available based on the business. Lenders may offer advice concerning what they feel would make a good buyer. We’ll pass that on, too.