Small Business Spotlight
The right lender for an unpredictable small business acquisition
Nobody likes surprises on the road to becoming a small business owner. Surprises, along with both steep financial and human dependencies, meant a lot was riding on this deal’s successful closing.
The Small Business
WeCare Assisted Living, LLC
The Financing Challenge
The small business acquisition for WeCare Assisted Living in Denver was anything but straightforward. As the team advanced through the deal stages, they made several unexpected discoveries: The seller was no longer actively running the business, the inspection revealed significant unforeseen issues, and both sides were understandably eager for a resolution. Without extraordinary perseverance, the deal simply couldn’t be accomplished.
Here's what our borrowers brought to Ready Capital
Surprise inspection report findings
An inspection revealed $100,000 worth of deferred maintenance, and a total of $750,000 worth of work outside of the deal buyer-seller agreement.
Additional unforeseen costs
The fire suppression bid came in over the estimate.
Ticking clock, high stakes
Residents were still onsite, and the state of Colorado’s laws called for a go-forward plan without delay.
Despite a long journey with many moving parts, Ready Capital maintained near-daily communication with the borrower and navigated every bump in the road. The BDO and team were able to take an in-jeopardy deal and transform it into an investment with an upward trajectory for the borrower.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.