BUSINESS ACQUISITION FINANCING
BUSINESS ACQUISITION: GROWTH
One of the most important aspects of business growth is the acquisition of real estate because most businesses are eligible for acquisition financing and this type of funds can be used to purchase real estate whether for owner occupancy, expansion or storage.
These types of loans are typically long-term i.e. 10 - 20 years. They are used for the purchase of a commercial real estate property which usually, causes the business to be responsible for a 10% down payment. Acquisition financing is easily attainable for small businesses since the loans traditionally carry easy terms with low interest rates.
Virgin businesses can use the acquisition funds to purchase their first building while seasoned businesses may be using those funds to expand or franchise their business. Acquisition financing makes purchasing property for businesses much less stressful for business owners.
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ASSESSING THE RISK INVOLVED
The typical risk assessment procedure should include evaluation of the following:
• Country Risks – Government stability, condition of the legal system. Potential possibility of wars and revolutions.
• Economic Risks - Local regulations and rulings. Local inflation factor.
• Local Currency Risks – Devaluation, exchange rate risks
• Market Risks- The uncertainty in a future utility prices, and the possibility of new competitors entering the market.
• Security Risks – The ability of a lender to take a possession of a plant in case of default.
• Energy Risks - Non-performance or default of Off-take and Power Purchase Agreements providers.
• Political Risks – Policies, regulations and stability of political regimes.
• Project specific Risks – Environmental Risk. Technological Risk. Construction Risk. Management Risk.
• Financial Risks – Risk of default, uncertainty of a return.
Further compounding the problem is that lack of funding can be due to many different problems, rather than a singular concern. For these types of businesses, one of the best viable solutions is Creative Financing. This option is one that we are very pleased to offer.
HOW DOES THE PROCESS OF CREATIVE FINANCING WORK?
The process is straightforward. It begins with evaluating a business and its proposed use of funding proceeds to identify the most appropriate investor matches when viable projects developers are looking for Private Equity, Venture Capital, Purchase Order and Inventory Financing, Accounts Receivable Financing, Commercial Real Estate Financing, Working Capital Financing, Assets Based Loans Financing, Renewable Energy Financing. In these cases, Conventional Financing is not an option.
Imperial Hope Financial can help with mcallen business acquisition loan, small business loan or any type of acquisition loan in Texas and Nationwide.
Our company works as your broker and might be able to help if:
• Your company has been turned down by your Capital Source in securing business acquisition funds.
• Your company help in selling a business. We have partners and business brokers that can assist you.
• Your company needs refinancing in a special situation to buy a business book like in the case of insurance agencies.
• Your company is being locked into an inappropriate financial structure.
• Your company does not have enough working capital.
• Your company has plans for M&A or LBO.
We bring a wide range of financial products to its clients.
INTERESTED IN FINANCING A BUSINESS ACQUISITION?
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