Why Business Brokers Get Their Listings SBA Pre-Qualified

Before They Even List Them!

Business brokers who get their listings SBA pre-qualified have experienced quicker closes and with less hassle. Here are three reasons why brokers should pre-qualify their next business listing:

01.

Attract More Potential Buyers

Your listing won’t just be any listing, it will be an “SBA Pre-Qualified Listing” and really stand out from your competition if you so choose to market in that way.

02.

Give Buyers Confidence

Having your listing “pre-qualified” will give potential buyers the added confidence that they can finance this transaction.

03.

Speed Up the Sale

Our thorough high-level underwriting of the business will get everything analyzed upfront, so there will be fewer possible hold-ups later on. Issues that need to be overcome or documented can be resolved before you even list it!

FREE Business Debt Service Analysis By Lendway Capital Advisors

Our Soon-to-be Famous “Prequal on Steroids!”

There are a lot of financiers that will put together a piece of paper on their letterhead and say a business is prequalified with a certain amount down, and here are the rates and terms, but usually not much more than that. Many of the prequals that business brokers show us on a daily basis are not detailed, and I really wonder sometimes if they even looked at the financials. What they provide is just plain garbage at times.

Lendway Capital Advisors is nothing like that. We give our business brokers a very detailed analysis of the business as it specifically pertains to the debt service coverage ratio (DSCR Metric).

We also run through your recast and make sure that the addbacks you have listed will be able to be utilized through our funding source.  Some addbacks might not be allowed for cash flow purposes, so it is better to know now than down the road. Especially if you are counting on these addbacks for your current valuation. That could be a big problem that we avoid up-front.

We will then help facilitate a structure that will work!  Not only will it be very specific, but most importantly, backed by a very thorough analysis of the financials. The last thing anyone wants is a surprise!

This is all FREE! We do not charge a dime for any of this. We know that a certain percentage of the deals we analyze will turn into transactions and some won’t. We are okay with this. If this analysis helps you sell a business, then it was worth it. Lendway Capital Advisors wants to be a trusted advisor to business brokers and intermediaries. We will do plenty of business together if we keep working jointly as a team.

This FREE Analysis & Pre-Qualification Will Accomplish 3 Major Goals!

01.

Gives you the confidence you need that you can sell this business at the price you have listed because it has been scrubbed by a lender who has done a very thorough analysis of all the financials. It gives you that added piece of mind that you know you are exact on the price!

02.

Maybe the seller has unrealistic expectations of the value of their business and this gives you proof that the business might be overpriced beyond what a lender will lend. You can then have that, “Come to Jesus” moment with the seller on price, and let us be the bad guy. We can even go over our analysis with the seller if you like. We do it all the time and don’t mind at all.

03.

Gives buyers a very detailed understanding of the business as it pertains to the debt they will incur if they choose to purchase this business. It not only answers the question of “what” the business can service but “why” it can service this amount of debt.

Also, you would be surprised how many buyers do not even know how much they will put in their pocket after they pay debt for a particular business and this spreadsheet will spell all that out for them. We can also go through our analysis with buyers, so they totally understand how we reached the figures we did.

Get Your Listing Pre-Qualified

Success Stories

New Flower Shop Owner Takes It To Another Level

A Nice Little Flower Shop Has a New Owner Who Will Take it to Another Level

Ambrus, who is originally from Hungary (my grandfather’s country), came to the United States for opportunity and this is his first entrepreneurial conquest.We were able to fund a nice little flower shop for him to the tune of $599K.We know ...
Read More
New Entertainment Start-Up in Kansas Funded

Shuffleboard Anyone? New Start-up Larks Location in Kansas Funded

So, if you have not heard about Larks it is a very unique concept where they combine shuffleboard, mini-golf, arcade games, and a great restaurant and bar experience all into one! There is something for everyone. We funded a new ...
Read More
Alaskan Native Purchases Local Hardware Company

Long-Time Alaska Native Purchases Local Hardware Store in the Community

There are always those stories that tug at your heart strings. Rachel who was a long-time resident of the community in Alaska found out the local hardware store was for sale. We were able to fund $540,000 for the purchase ...
Read More
More Success Stories

Frequently Asked Questions for Business Brokers

What is an SBA pre-qualified business listing?

An SBA pre-qualified business listing has undergone an upfront financial review to estimate how much acquisition debt the business may be able to support. Lendway Capital Advisors analyzes cash flow, add-backs, debt service coverage, purchase price, and potential loan structure so brokers can identify financing concerns before taking the listing to market.

Why should a business broker pre-qualify a listing before marketing it?
Pre-qualifying a listing can help a broker set more realistic buyer expectations, support the asking price, and uncover financing issues before they delay a transaction. It also gives prospective buyers more confidence that the business has been reviewed from a debt-service perspective and may qualify for acquisition financing under an appropriate structure.
What documents are needed to pre-qualify a business listing?
The initial review typically requires three years of business tax returns, a current year-to-date profit and loss statement, a current balance sheet, the broker’s recast or seller discretionary earnings calculation, and the proposed purchase price. Additional documents may be requested depending on the industry, ownership structure, existing debt, and complexity of the business.
Is the business debt service analysis really free?
Yes. Lendway Capital Advisors provides the initial business debt service analysis and listing pre-qualification at no cost to the broker or seller. We understand that not every analysis will become a financed transaction. Our goal is to help brokers identify financeable opportunities, address potential issues early, and build long-term relationships through completed acquisitions.
Does an SBA pre-qualification guarantee that a buyer will be approved?
No. A listing pre-qualification is not a final loan approval or a guarantee that every buyer will qualify. Final financing depends on the buyer’s credit, experience, liquidity, equity contribution, personal financial position, and the complete transaction structure. The pre-qualification evaluates the business and provides a stronger starting point for qualified buyers.
How does Lendway review seller add-backs and the asking price?
We review the broker’s recast to determine which proposed add-backs may be accepted for cash-flow and debt-service purposes. If certain add-backs cannot be supported, we explain how that may affect financing capacity and valuation. This helps brokers address unrealistic seller expectations before a buyer invests significant time and money in the transaction.
Can Lendway explain the analysis directly to the seller or buyer?
Yes. We can review the debt service analysis with the broker, seller, or prospective buyer and explain how the figures were calculated. This includes the cash flow available after debt payments, the proposed financing structure, and any concerns that could affect closing. Clear explanations help all parties understand what the business can realistically support.

Tell Us About Your Business, Merger, or Acquisition

}

Monday - Friday
8AM - 4PM

847-644-8085