I’ve spoke with them. It’s been a while but the problem with most is depending on size of your agency, they will want to use current commissions to justify their loan.
Yes, Live Oak Bank does use current commissions (revenue). All SBA lenders use the cashflow of the business to determine repayment of the loan. If the loan pencils and can support the monthly repayment they will make loans. Otherwise you would need to come in with more cash down payment. No bank will make business loans unless they can see a clear path to repayment.
NCAgent828 - What terms are you thinking for the base of a loan? Im always looking for additional funding ideas!
Yes, Live Oak Bank does use current commissions (revenue). All SBA lenders use the cashflow of the business to determine repayment of the loan. If the loan pencils and can support the monthly repayment they will make loans. Otherwise you would need to come in with more cash down payment. No bank will make business loans unless they can see a clear path to repayment.
NCAgent828 - What terms are you thinking for the base of a loan? Im always looking for additional funding ideas!
I’m hoping for a repayment of 10 years and at the time $5,000 down payment. Not sure if that can be done now or not. Finding would only be needed for agency acquisition. So ultimately funding would increase revenue significantly.
NCAgent, feel free to send me a PM with amounts. Most business loans need 20% down payment. Banks will only make loans if they pencil out and not include additional growth off the bat...most want it to cashflow based on the current business volume.
I recently did an Oak Street loan for a purchase. It was a 10 year note. They financed the closing costs so it was minimal up front.
I’d be concerned if you are worried about the down though. I would hope to have some liquid available for the increase costs of adding location(s), employee(s), etc associated w purchasing an agency before making that commitment
