Deerbank Capital Group, a small-business funding service in Conway, South Carolina, explains how a loan to buy an existing Horry County business works: what partners read, down payments and seller notes, debt coverage and a step-by-step checklist, with county business counts and a worked example. A buyer's request is decided by the funding partner reviewing it.
Can I Get a Business Loan to Buy an Existing Business? What Partners Look At in Conway, SC
Yes. A business loan can finance the purchase of an existing business in Conway, SC, and a term loan is the product built for it. Partners read the target business's tax returns, financial statements, bank deposits and asset list, the purchase agreement, and the buyer's credit and down payment. Deerbank Capital Group matches your request with funding partners, who review it and make their own decision.
Horry County had 10,550 employer establishments in 2023, and 54.5% had fewer than five employees (County Business Patterns). When one of them sells, a buyer's loan request is read from their records.
Can I Get a Loan to Buy a Business? Practical Notes for Horry County, SC
Partners lend for a purchase when the business's own cash flow can cover the new payment, the buyer brings some of their own cash or experience, and the records hold up. A buyer who has worked in the trade, or a seller who stays for a transition, strengthens a request.
What Is Acquisition Financing? A Conway, SC Answer
Acquisition financing is money borrowed to buy a business: its assets, its customers and its earnings. It can come as a term loan, a seller note (the seller lets the buyer pay part of the price over time), equipment financing for specific assets, or a mix. The pieces add up to the price less the buyer's down payment.
How to Buy a Business with a Loan? How Horry County, SC Owners Approach It
- Get the seller's three years of tax returns and a current profit and loss.
- Get the asset list, the lease and any key contracts.
- Put the price and the main terms in a signed letter of intent.
- Decide the down payment and ask whether the seller will carry a note.
- Attach the letter of intent and the seller's records when the request goes in.
- Close after the partner's review and any license or lease transfers.
How to Buy a Business? The Conway, SC Version
Buying a business starts with deciding what you are buying: the shares of the company, or its assets. An asset purchase leaves old debts with the seller; a share purchase takes the company as it is. Ask an attorney and an accountant which fits before signing a letter of intent.
How Does Acquisition Financing Work? A Plain Answer for Horry County, SC Owners
Acquisition financing works by stacking sources: the buyer's down payment, a seller note if the seller agrees, and a term loan for the rest. Working capital for the first months after closing is a separate need; a working capital request or a line of credit covers it.
Buying a $240,000 Business: Worked Example
Illustration only, invented figures: a buyer agrees to pay $240,000 for a business. In this invented example the buyer puts down 10%, $24,000; the seller carries a note for 15%, $36,000; and a term loan covers the remaining $180,000 (our arithmetic).
In this invented example the term loan at 10.5% over 120 months has a payment of about $2,429 a month, or $29,146 a year (our arithmetic). If the business's cash flow available for debt is $58,000 a year, it covers the term loan payments about 1.99 times (our arithmetic), before the seller note's payments are added.
Debt Coverage: The Number Partners Look For
Debt coverage compares the cash a business generates with the debt payments it has to make. A partner works it out from the seller's returns, adjusted for the owner's pay and one-time costs, and compares it with all the debt after the purchase. Work it out yourself first, with every payment included.
Licenses, Leases and Tax Accounts That Must Transfer
A business license, a lease, a liquor or salon license, and state tax accounts may not move with the business automatically. Ask each office and the landlord before closing. The Conway, SC page links the county's license guide.
Checklist Before a Purchase Request
- The letter of intent or purchase agreement.
- Seller's tax returns, financial statements and bank statements.
- The asset list and the lease.
- Your own credit, resume and down payment source.
- A plan for the first year after closing.
Start with the request form when the letter of intent is signed.
By Deerbank Capital Group · Updated
