It shouldn’t come as a huge surprise, but getting a business acquisition loan is a somewhat lengthier and more involved process compared to other types of financing. Your lender needs to evaluate more than just you; they also need to assess the business you plan on buying. At First Bank of the Lake, we also always recommend consulting with professional advisors early in the process such as an attorney or CPA.

With that in mind, having some of these items prepared in advance can help your lender deliver a faster, more reliable loan decision. We have put together a quick list of items to consider early in the process. This is not an official or comprehensive list, but it covers some of the most important and time-sensitive items needed in the loan process, meaning that you can get a quicker loan approval and close your loan faster. 

This particular morning was a beautiful morning in South Carolina. Afterall, it was Friday, the weather had cooled a bit with low humidity, and the weekend was here. A touch of fall was in the air. I was encouraged by my pipeline, with a large business acquisition on its way to approval and closing that was my top priority. It was the setup for a perfect day. What could go wrong? As I made my way to my office desk, I got a call from my buyer who said he was going to pull out of his letter of intent (LOI) today. Since this was a $7 million dollar transaction, you can imagine my surprise and disappointment. When I asked him what had gone wrong, he simply replied: “The seller is not being cooperative.”

As business activities slow down, lenders shift their focus toward specific aspects when evaluating financing requests. In such times, lenders scrutinize certain items more closely to assess the viability of providing funds. Let's discuss four key factors that business lenders prioritize during the review process. By examining these essential business criteria, lenders aim to make informed decisions that align with the financial stability and growth potential of the businesses they support.