Bizulo.com Services for Community-based Financial Institutions

Community-based, small banks and start up banks often need cost-effective solutions to address credit related and credit program related issues.  Your credit files, underwriting and loan reviews, credit policies, and ALLL and collection efforts will be reviewed and evaluated by stakeholders and regulators. Consider outsourcing with Bizulo.com – our experienced consultants can assist you to meet your business and regulatory requirements timely and effectively.

The following are Bizulo.com services currently offered, which, in each case, are custom tailored to meet the needs of your community-based financial institution:

• Commercial Credit Underwriting & Decision Support
• Comercial Loan Review
• Loan Policy Revision
• Portfolio Risk Management
• ALLL Analysis
• Loan Workout
• External Financing Arrangements

Bizulo.com can help you establish solid credit policies and processes. We can put them in place and get them going. We can train your staff and review their work. Such services will allow you to be assured that they are getting done right.

Please contact us with your project requirements and contact information so that we may start our consultation process.  An experienced Bizulo.com consultant will contact you shortly.  

(c) 2010, Bizulo Inc.

Q: I am buying an existing small business with real estate where the business operates. Can you help?

A: Buying a business with real estate can be a smart move for you as it will benefit the buyer in many ways. Our consultant can help you obtain the necessary funding to close your deal. 

While the lending criteria have been stringent, there are still funding sources available for this kind of requests. Private lenders offer quick and flexible funding at higher interest rate. You can approach commercial banks for a traditional bank loan or SBA loan to fund the acquisition as well. The fact that the real estate being purchased will be pledged as collateral makes such deals attractive to the lenders.   

If the requested loan amount is less than $2 million, and the business you are acquiring occupies more than 50% of the total space of the real property being purchased, your funding request can be processed through SBA 7(a) term loan program. Most lenders participating in this program will finance up to 85% - 90% of total appraisal value. Lenders will require you to offer all business assets and the real property being purchased as collateral for the loan.    

The real property may have other units that are rented to the 3rd party tenants. Note that in determining the repayment capacity of the business for an SBA 7(a) request, the lender will not consider rental income as part of the business cash flow to service the debt.

The key underwriting factors will be:

- Type and nature of business
- Historical and pro forma financial performance of the business;
- Value of real estate and underlying business assets being acquired;
- Your industry experience and management skill
- Your credit history

For more information, please use our contact form to provide us with your funding scenario.

(c) 2010, Bizulo Inc.

Q: How can Bizulo.com help me to get the funding I need to acquire an existing business?

A: If you want to buy an existing business, and need additional cash to close the deal, consultants at Bizulo.com can help you structure the deal and obtain the right funding for your business from our affiliated lenders.

There are several financing options available. Most qualifying business acquisition loan requests less than $2 million can be processed through SBA 7(a) loan program, funded by participating banks. Traditional bank financing and private money financing are also available, with higher cost of capital. 

Below is a list of basic documents that lenders need to start the underwriting process for an SBA 7(a) business acquisition loan request:

- Business plan and financial projection
- Copy of business or asset purchase contract
- Recent financial statements or tax returns of the business for sale
- Interim financial statements (from last fiscal year end to date)
- Copy of lease
- Your recent personal financial statement and tax returns

Lenders consider business acquisition deals risky as they result in changes of ownership and management, and capital structure. When lenders underwrite such deals, they focus on the type and nature of business, historical and pro forma performance, industry and management expertise, and amount of owner's cash investment in the business. Of course, lenders may require additional collateral if they find weakness in the deal.

For more information, please use our contact form to provide us with your funding scenario.

(c) 2010, Bizulo Inc.

Why use a loan broker? Because a good loan broker has years of lending experience, has established relationships with multiple funding sources and provides structuring guidance with appropriate terms and conditions that make the difference between an approval and a declined loan. The loan broker will spend sufficient time talking to you about your businesses situation and lending needs.

After appropriate financial documents are collected the broker will make sure they are effectively presented to the right funding source (experienced brokers know what funding source is likely to say yes or no to various types of loans). The loan broker is a valuable resource that saves borrowers multiple trips to many different funding sources and ensures your loan application package is complete and ready for credit review to gain the best chance for loan approval. Use a Bizulo credit professional to help position your loan needs for success.

(c) 2010, Bizulo Inc.