The Problem: Business Acquisition With Collateral & Credit Issues


A beverage retailer, started in 2016, had a very successful start with a history of strong revenue. The startup business owner couldn’t manage the thriving business and wanted out. Our client, the buyer, had significant credit events and a collateral shortfall, which prevented the client from purchasing the business with a traditional loan.

  • Credit Issues
    Previous health problems caused an isolated lapse in good credit and prevented the client from purchasing the business with a traditional bank loan
  • Collateral Shortfall
    The buyer lacked specific traditional collateral requirements and other conditions to meet the demands of most banks.

The Solution: SBA 7(a) Loan With Seller Financing


First Business Bank helped its client to purchase this business with an SBA 7(a) loan that included 5% financing from the seller, a 15% down payment from the buyer, and 80% from First Business Bank. The 10-year loan terms also waived some traditional demands that would have been too costly for the buyer to accomplish and thus sink the transaction.

  • Flexibility
    First Business Bank worked with the buyer and dropped some common requirements based on strong cash flow and good credit history aside from isolated events.
  • Payment Terms
    To help overcome a collateral shortfall, the First Business Bank structured the SBA 7(a) loan to provide seller financing and worked with the buyer to make the transaction happen