It will be fine
Well-Known Member
Bacha, I'll assume you've never tried to get financing, it's not that hard. If SWAs can't find the cash, many sellers will self-finance the route purchase. What do you gain from spreading false statements like this?
Glad I'm out of this Part2
- Thread starter bacha29
- Start date
Unfortunately, as the clock ticks in these ISP states these scams are worth less and less. I'm almost out of this mess. All these guys running around borrowing money and acquiring huge debts to stay alive in this hoax is really sad to see. I know they don't think x will change the rules on them, but I can promise it's only a matter of time before they do. I can already see a few of the guys going forward with ISP are going to be in way over their head at Xmas. It's like a car wreck, you want to look away but you just can't.
WestcoastHD
Massive Stinkies
This.
WestcoastHD
Massive Stinkies
Mr. ITBWF. I conversed with several people first hand who are having this problem. Owner financing? How many sellers do you really think are going to offer that when there are so few hard assets involved? Especially when you are talking in timelines of 6 years or more? When an SWA is forced out by ISP conversions they want CASH not an IOU that goes on for years when in this operation you don't know what's going to happen from one day to the next. Owner financing, come on. How stupid do you think people are?
Hey Bounty : Good points. If traditional well capitalized commercial banks are not willing to go over market to finance route purchases then the value of those routes can't help but start a downward trend because there is no firm bankable value to them making them even more speculative in nature. Who will own these operations in the future? Well capitalized hedge funds and private equity groups. Not heavily leveraged, cash strapped little contractors.
The SWA is going to accept pennies on the dollar the longer it goes on. Won't need seller or possibly any financing then.
Good Point bbsam. As we all know x will do whatever it believes neccessary in order to preserve shareholder equity. It bears no sense of legal or moral obligation to do anything to preserve contractor equity. Those 401k's, stock options and defined benefit pension plans are all that matters. Anyone who believes otherwise is doing a disservice to themselves.
You can get SBA financing on Fedex routes. Google it there are quite a few lenders doing it now. The main issue was SBA wouldn't allow that large of a customer for a business (100%). They are allowing it for Fedex now. You won't get a true bank financed loan for the routes or for any other business.
Saying you can't get financing shows this is a scam is bs. The SBA is actually allowing these loans now even though they don't fit in their "guidelines".
Saying you can't get financing shows this is a scam is bs. The SBA is actually allowing these loans now even though they don't fit in their "guidelines".
good point but in the short time line contractors have to switch over to isp how many of them are going to be wiiling to take the risk of waiting out for an SBA loan? In fact some of the sellers over on bizquest have plainly stated that they wiil not accept SBA financing. Never the less your point is well taken. Unfortunately the guys who are going to bet a resevoir full of borrowed money on the hope of a positive outcome including the hope that they will always be able to find someone willing to work for next to nothing on a continous daily basis are in for many sleepless nights.
STFXG
Well-Known Member
That doesn't make sense. They wouldn't accept SBA financing? Meaning they wouldn't accept the cash if the buyer got an SBA approved loan? Or do you mean they are unwilling to get an SBA loan in order to expand? SBA loans just limit the risk for the lending institution. Not quite sure what you're talking about.
The question is going to be the timeline. Is there enough time to get an application approved.? Remenber the SBA is the lender of the last resort and you don't get one of those through in a week. If someone in the most recently annouced conversion states wants to go after an SBA then they better get a move on.
It will be fine
Well-Known Member
Just did one. Took about 5 weeks, 2 of which were entirely on me getting together paperwork. Keep talking out of your you know what. There is no loan of a substantial amount that goes through in a week.
Why do you call them "the lender of last resort"? There's a lot of high interest loan companies I would consider far later than the SBA.
That doesn't make sense.
Find a business that a bank will finance without going SBA. SBA is not the last resort. It's the only resort. Unless you do the predatory lenders or use cash with financing trucks for the rest there are no other options.
Many of the sellers on Bizquest and other sites have holes in their financials. They are showing 35% returns which I don't think are possible if you are paying a half decent wage and maintaining a fleet. I think 2/3's of that is about the max.
Many of the sellers on Bizquest and other sites have holes in their financials. They are showing 35% returns which I don't think are possible if you are paying a half decent wage and maintaining a fleet. I think 2/3's of that is about the max.
There is holes in their financials because most of them are paying some of their employee wages off the books.Contractors don't pay a decent wage or maintain their fleet.
