Case Study: Buying/Selling
My clients had been leasing their building for more than ten years when the opportunity to buy it arose.
Although the business had good cash flow and the building provided excellent collateral, by clients had invested all of their cash flow into upgrading the center’s equipment and adding tenant improvements to the building. As a result, they did not have enough cash for a down payment.
An SBA loan secured by the building and equipment refinanced all of the existing debt and funded 100% of the purchase price of the building. We were able to show that the cash invested into the tenant improvements and the equipment provided an adequate down payment to meet the bank’s and SBA’s requirements.