BiggerPockets

Business Equity Financing on the Rise

Saturday, December 13

Commercial equity funding is rapidly becoming a mainstream product essential to buyers in need of equity capital infusion. Borrowers are beginning to realize the benefits of using equity to purchase franchises or businesses as a necessary tool more than ever. The most recent statistics reflect six out of ten buyers do not have sufficient equity funds to qualify for a business loan. Credit requirements are increasingly becoming more stringent with higher FICO scores and lower LTV's the standard in the industry. Maximum financing is now reserved for only the elite borrower with superior credit.

The EquiFund Program provides buyers with qualifying businesses the necessary funds needed to secure a mortgage loan through Bancofino. Equity from the property is funded to the buyer as a taxable grant with no repayment whatsoever. EquiFunds are wired directly to the buyer's EquiFund bank account. The amount of equity available is the difference between the buyer's purchase price at maximum appraised value and the seller's final sales price. The exact amount of equity needed is then calculated and verified using the EquiFund Calculator. Contact us direct or your authorized EquiFund Broker for program details.  

Equity financing is recognized as a crucial and necessary service for the successful outcome of many business or franchise transactions being bought and sold today. 100% financing is usually attainable from the combination of several factors.  The business must be sold with existing equity built into the sales price.  The seller if necessary must provide a Seller Deferred Equity option (SDE) to the buyer in order to maximize the buyer’s financing capability. Closing cost assistance is essential for the buyer to reserve funds for projected operating business expenses. Contact us on how we can help you secure up to 100% LTV financing for all types of business loans with and without real estate.  Send your inquiry to businessfinancing@equifunds.us.

Visit our site at www.equifunds.us for more information about our services.