Small Business Spotlight
IT company partner buyout with no money down
When business partners part ways, financing should not only honor their accomplishments but set them on a path to near-term growth.Â
Loan Amount
$1,440,000
Loan Purpose
The Small Business
Sanapptx
Plano,TX
The Financing Challenge
When it was time for his partner to retire, the co-owner of a Plano, Texas-based IT company came to Ready Capital. He had goals for growth, and he’d been through a partner buyout before. But transitioning to the next chapter from a place of strength hinged on reaching the right loan terms.
Loan Scenario
Here's what our borrowers brought to Ready Capital
Collateral shortfall
Shortfall since much of an IT company’s product is in the cloud
Valuation complications
Unexpected issues with business valuation
Debt
Debt in need of refinancing
CREATIVE SOLUTION
Ready Capital was able to focus the story of the loan on the borrower’s strengths: a healthy number of contracts and proof of their in-place expansion.
Reliable Results
- Locked in $1,440,000 of SBA 7(a) financing to cover the partner buyout including a refinance of existing debt, and $490,000 in equipment and working capital.
- Owner was able to achieve 100% ownership without putting any money down.
- Owner now has a clear vision and runway to achieve his growth goals for the company.
- Ready Capital was able to offer a competitive referral fee.
The Non-Bank SBA Preferred Lending Partner 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 don’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.