Will I have to pledge my home as collateral?

Almost always, Yes, if you have one.  SBA requires the bank to take sufficient collateral to fully collateralize the loan based on liquidation values. However, once the bank has taken all of the collateral available, a bank may make the loan without full coverage. This topic typically requires additional conversation.

 

What is included in Loan Packaging?

We give guidance on the loan process and review of your documents, to raise questions that the bank will likely raise. This will give you the opportunity to pre-answer the questions in your business plan. Also, inconsistencies may be better eliminated. We will create the SBA forms for your signature. We advise you of potential negotiable items by separating bank requirements from unchangeable SBA requirements. PFC does not preparing everything for you, nor is it brokering the loan.

 

Will you write my business plan or create financial projections?

Typically, no, neither will Franchise Parent or Area Franchisees. It is important for the success of the business that you independently research the business opportunity, interview other owners, and develop a plan by which you intend to run your business. It is important that your plan be your plan versus someone else's. Review and editorial comments are a part of our loan packaging service. Substantial business plan assistance is available for additional negotiated fees.

 

Alternatively many businesses engage the service of a CPA to assist with their financial projections. Should you prefer to complete your own, review and minor edit suggestions are included in loan packaging. Substantial projection assistance is available for additional negotiated fees.

 

Will you broker my loan with a bank?

Not as such. However we do keep track of banks appetite for SBA loans and which ones enjoy lending to your industry. This can save you time and money by eliminating false starts.  We do add value in the bank selection process; however we are careful stop this side of brokering a loan request. Banks are aware of the packaging industry, separate from brokers.

 

How long will it take?

Once we submit the complete loan package to the bank, the following is common:

A 30 day SBA loan is very quick and rare, though possible under perfect conditions.

A 45 day SBA loan is common with efficient lenders.

A 60 day SBA loan is slow unless the loan is secured by real estate.

A 90 day SBA loan is slow if secured by real estate.

 

 

© 2005 Preferred Financial Consulting

FAQ — More SBA Lending

To contact us:

Preferred Financial Consulting or

Preferred SBA Packaging

8863 Greenback Lane #210

Orangevale, CA 95662