Summer starts to wind down and come to a close, the kids are going back to school, and the lucky ones are coming back from vacation. Things are kind of getting back into normal and families are settling down for the fall coming up.
While everyone was on vacation and enjoying the summer, we’ve been hard at work here at Sealey Business Brokers, coming up with different ideas to help buyers. Some of the buyers that we’ve been working with have told us that the biggest thing holding them back from owning a pool route is financing and the limited options available to them.
Most of the buyers that we get there are interested in getting an SBA (Small Business Administration) loan to finance a pool route and unfortunately, the SBA doesn’t really finance pool routes due to the lack of collateral on those loans. So, they are forced to either go to different avenues, whether folks are refinancing their homes and pulling equity out of it, cashing in their retirement accounts, like I did when I bought my route, just a lot of different things. We’re always looking for different ways to figure out the financing piece on how to acquire a pool route.
Having said that, we’ve been working with a lot of our sellers to educate them on the benefits of offering owner financing and I’m proud to say with all the hard work that we’ve done, 20% of our routes right now, the owners are providing owner financing now. So, if you’ve seen a route in the past that might have been outside of your budget, take look at it again on our website and see if the route that you’re interested in has owner financing available. Now, we’ll tell you that you need to have to submit your credit report in order to qualify for that, but it makes it a much faster and quicker process than traditional means.
Another avenue that we’ve seen that was really interesting is, I’ve attached a video from a guy, and I have no affiliate with them, I just thought it was a really interesting program and it was through Navy Federal Credit Union. The loan programs that have little collateral are required to get that loan. They have their own qualifications but even on the video, he was mentioning that you could qualify for up to a hundred eight thousand dollars ($180,000), and it kind of goes through the different loan programs that Navy Federal Credit Union has. I’ve also provided a link below for his YouTube video and also the website for Navy Federal Credit Union.
We’re always thinking outside the box and trying to see how we can help our buyers. I hope these tools help you reach your goals as with everything use them in moderation and look forward to working with each and every one of you.
Till next time!