Basic Purchasing Criteria
Does your submission meet the following criteria?
Here's how to quickly determine if your submission qualifies for funding:
items listed in order of importance
| Down Payemnt | 30% minimum of purchase price. Please specify if any of the down payment was borrowed |
| Payor Credit | Minimum of 625 FICO*. No major derogatories (i.e. bankruptcy, 180 delinquency, etc.). Credit history since business purchase should be emphasized |
| Business Cash Flow | Seller’s Annual net income should cover note debt (monthly note payments X 12) |
| Seasoning | 2 months minimum. Minimum can vary by business type. The more seasoning, the higher our purchase offer |
| Personal Guaranty | Required from principal buyer (or Note “payor”) unless note has substantial seasoning or if CPA audited financial statements show significant cash flow |
| Term of Note | Maximum 60 months |
| Security | Filed UCC-1 with equipment and security agreement encouraged |
| Lien Position | First preferred, second possible depending on business cash flow and CLTV** |
| Balloon Payments | Discouraged |
* FICO = experian credit score
** CLTV = combined balance of all incumbrances to business value
