THE Business for Sale Marketplace

Unique opportunity to acquire a California licensed commercial finance business. The business was founded in 1990 to provide vertical financing to businesses for accounts receivable lending, inventory lending, and short term capital loans. At its peak the business processed $1,500,000 per month of secured lending and was very profitable. For the last several years, due to family health related issues, the company did not pursue new lending and lines of credit and only provided loan brokering services to a few select clients. The Founder and controlling shareholder has over 50 years experience in the secured lending industry and is willing to continue as a consultant for a minimal amount to assist in re-ramping the lending operations of the company. With the founder’s assistance, the business redevelopment phase should take about 90 to 120 days; and by maintaining a 45 day turn on advances (lending) and managing the yield (spread between interest and fees charged and cost of funds), positive cash operations should be achieved in the first six months. Based on previous experience and properly managed the Company should earn about 25% on capital employed.
The Company is a California C corporation in good standing and is licensed by the State of California as a Finance Lender and Broker. A Finance Lenders License provides the licensee with an exemption from the usury provision of the California Constitution, which means that interest rates and fees are only limited by market conditions and not by statutory restrictions. The License authorizes the company to: Make commercial loans; Make consumer loans; Broker loans; Factor receivables; Provide secured (asset based) lending.
The company has an unused bank line-of credit of $300,000 and in the past had established lines of credit to support 80% of its lending. New owners would need to have the financial capability to disperse the difference between the amounts loaned and the amounts borrowed. This requirement would be reduced by any participation agreement with another finance company.
The purchase price is $300,000 and the founder will carry back a seller note in the amount of $150,000. The reason for selling is that the founder is semi-retired and does not want or need to work full time. However, he is willing to remain, provide necessary training for new owners, and assist in re-ramping lending operations.
SUNBELT BUSINESS BROKERAGE (“Broker”) has made no independent investigation or verification of any representation, warranty, document, or information presented by the seller herein. Prospective buyer is responsible for their own independent investigation with respect to such items and is advised by Broker to do so and to obtain the appropriate counsel from legal, accounting and other professionals concerning this business opportunity.