Passionate Animal Lovers Achieve their Dream of Owning Upscale Pet Care Business
Learn how we were able to finance this deal for a husband-and-wife duo to purchase an established pet care business by looking at the total picture.Â
Loan Amount
$1,170,000
Loan Purpose
The Small Business
Pet Boarding and Daycare Business | East Haddam, CT
The Financing Challenge
A husband-and-wife team came to us with the hopes
of purchasing an upscale pet care service business,
but they had little industry experience. Challenges
were a minimum down payment, lack of industry
experience, and shortage of collateral. They both had a
strong work ethic as well as a genuine love of animals
and building connections with them. We looked at the
total picture, which included a solid earnings history
of the business, the borrower’s strong outside income
as well as managerial and ownership experience
that could easily transfer to the new business. The
wife currently owns and operates a marketing firm
working in various industries, where she manages
multiple contracted employees. She will leverage her
experience and knowledge in marketing and strategy
to drive the growth of the existing business. The
husband previously served within a leadership position
in the United States Navy and will be the primary
owner/operator. The sellers also remained present
to train and assist the new owners for three months
following the sale.
SBA 7(a) Loan Scenario
Here's what our borrowers brought to Ready Capital
Established Business
Purchased an established business of over 45 years.
Good Cash Flow
Great cash flow with good credit and stable financials.
Lack of Industry Expertise
Lack of prior industry experience, but transferrable managerial and ownership experience.
A Seamless Transition
Sellers that were willing to make a seamless transition of ownership with months of training.
CREATIVE SOLUTION
Reliable Results
- The loan allowed our borrowers to achieve their goal of purchasing an established business and create a top-tier animal daycare experience. Together we found a way to structure the loan to have the business cash flow.
- The acquisition of the business will allow the buyers greater earnings potential as well as enable the business to continue to serve the local community.
- The new owners kept the existing staff, and they will retain meaningful employment with the business. They will be able to continue to provide exceptional care and bring innovation to scale the business to the next level.
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.