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    1 Reply Latest reply on Nov 18, 2009 4:40 PM by Bridge

    How To Sell Your Business Without Annoying The SBA

    JasonTees.com Scout
      (Distressed Loan Advisors assists small businesses in settling their SBA and conventional debt, and can be reached at www.JasonTees.com)

      If
      you want to sell your business because you are ready to move on to your
      next venture, it’s important to remember that your lender needs to be
      part of the process.

       

      We’ve had clients who call to tell us that they’ve already sold
      their business and used the money to pay other creditors. That is a
      MAJOR no-no. Why? Because is most cases, the assets of the business are
      collateral for the SBA loan you have. This means that you do not have
      the right to sell the assets without the permission of your lender.

       

      So if you are going to sell you business, or the assets of the business, here’s how it needs to go down:

       

      1) Call your lender and let them know that you are planning on
      getting out of the business – either via sale of the assets, or a sale
      of the business as a whole

       

      2) Request that your lender send out an appraiser to your business.
      The bank needs to know what the assets are worth before they will be
      able to approve any offers for the assets.

       

      3) Before you agree to any deals to sell the business assets, submit the offer to the bank and let them approve it.

       

      4) Only after the bank gives the offer the thumbs up, finalize the sale of the assets.

       

      5) Be sure to send all the funds from the sale to the bank (some
      banks may want the seller to send them the funds directly). If you use
      the money for anything else, you’ll be giving the bank a big reason to
      start legal action…something nobody wants to deal with.