Financing For Specialized Niche Markets

We recently had the pleasure of working with a borrower that has successfully owned and operated nightclubs in the Fort Worth, Texas area for over 20 years. SBA-Capital arranged $1,850,000 long term financing for the borrower that included funds to purchase and renovate the real estate, purchase FF & E and inventory, plus provide working capital. The Borrowers experience and forward-thinking skills were invaluable assets that made it possible to secure financing for his special and unique business. SBA-Capital underwrites specialized loans in all industries and has the skill, ability, and commitment to secure “niche” loans for our borrowers.

As a lender, it was a joy working with this borrower to prepare his loan request as we did the following:

  • The Borrower entered into a purchase agreement to acquire the Real Estate, subject to SBA-Capital’s loan approval
  • Architectural designs and specifications were created allowing the General Contractor to prepare a line item bid to complete all the renovation improvements to the building at a specified price
  • The borrower developed a P & L Proforma for the proposed business relying on his 20-year history of operating Entertainment Centers.
  • SBA-Capital utilized their Proprietary EBITDA software to create a spreadsheet showing Projected Profit, Cash Flow, monthly payment, and the all-important Debt coverage ratio.
  • An as-built appraisal confirmed the market value of the property and business was equal to the value described in the loan request.

The above analysis provided the borrower with the comfort level he needed to move forward with his business plan and provided the lender with the data and support information they needed to approve the loan as requested.

Looking for unique business financing – that requires the lender to understand your business plan and is committed to spending the time it will take to underwrite your loan? Call or email Hershel Pierce to discuss how SBA-Capital may apply the same EBITDA strategy as described above to secure financing for your business.