Most people who go fishing know the most significant point at which a Fishman can lose his catch is when you get the fish alongside the boat. It is at this point where extra care is required. Most fish are lost at this critical moment of trying to get it in the boat (close the transaction).
So is the case when a seller has made an offer or presented a contract, subject to getting long term financing which is acceptable to the buyer? With both the buyer and seller thinking this is a slam dunk with nothing to worry about. However, the buyer chooses one the ten top national banks which say it is not problem, there is a very good chance the transaction will blow up in sixty to ninety days when the banker then comes back and says sorry, can’t do it after all.
The issue with dealing directly with one of the big national banks is the staff seems to change every thirty days. There is rarely active communication to know what is really going on or if there are challenges, which there typically are. Many times a loan denial has nothing to do with the proposed transactions, but rather bank internal issues which are seldom communicated to the buyer.
It is much smarter to use a trusted and proven SBA loan packager, that knows who is lending for the type of transaction to be funded. The loan packager will know what the banks criteria is and how it should be presented. If something goes wrong in the loan approval process, it is easy and fast to change to an alternate bank. This intermediary has been using the same a loan packer over twenty years, is a straight talker, keeps everyone informed, and does what he says he will do.
What happens after sixty to ninety days and big bank says, sorry we can’t fund the loan after all, is the transaction blows-up with buyer and seller being frustrated. This is a very difficult situation to save. It is kind of like the fish that got away as you had it along side the boat ready to bring it in the boat.
As a seller or a buyer, if you would like a confidential conversation about how to prepare, please contact me on my cell, 954-579-4687, or by e-mail at bobd@dolansales.com. My LinkedIn profile is at: http://www.linkedin.com/in/dolansales.
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