FINANCING


Majority of pet care business acquisitions (with or without real estate) are financed with an SB 7(a) loan. Contrary to common belief, receiving funding is not difficult and National Kennel Sales & Appraisals is proud to have strong relationships with several SBA lenders who are eager to finance our transactions. Part of our full-service sales process is securing financing for the buyer; after all, the seller can’t sell if we can’t secure a lender to lend.

SBA stands for Small Business Administration, which is a federal agency that guarantees (ie. insures) the loan up to a certain amount to the lender. The SBA does not make any loans nor provide grants, which is a common misconception. A lender, such as Wells Fargo, PNC Bank, Bank of America, etc. underwrites the loan and provides the funds, the SBA guarantees the loan to the bank in case the borrower defaults. The SBA has two loan programs that are suitable for pet care facility financing, the 504 and 7(a). A 504 is restricted to financing commercial real estate purchases, so most of the time the 7(a) program is best suited. For information on the SBA insured loan programs, please go to: https://www.sba.gov/funding-programs/loans.

Unlike a residential mortgage loan, where only the buyer’s financials are scrutinized, the majority of a lending decision in an SBA loan falls on the business financials. The buyer has to meet certain requirements (skill set, credit score, liquid assets, down payment, etc.), but the business financials have to prove that the business is solid, generating cash flow to service the debt and take care of the buyer’s financial needs. Cash flow is loosely defined what the business generates after all expenses are paid, including buyer salary.  It is the marriage of the buyer and the business that gets underwritten in a positive loan decision.

Yes the paperwork can be daunting, but we handle the collection thereof as well as the application completion.  Additionally, the lender will order a business and real estate (if included in the purchase) appraisals to ensure that the buyer is not overpaying for either.

Our firm is very skilled in structuring transactions and obtaining financing; once we understand a buyer’s skill set and financial abilities, we make recommendations how to finance an acquisition and fulfill a dream.

Existing facility owners looking to expand or buyers purchasing a facility not listed by us (and need financing):  email or call us to get personally connected to the top lenders for the pet care industry!  Your odds are of obtaining financing are much higher with our lender connections than any other bank.

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How much can you afford to buy?

Use this simple calculator to gauge an estimated price range of facilities you should focus on. Please keep in mind that your overall financial picture, and the business’ financials, affect the amount you can qualify for; if you would like to know the exact amount, we can have one of our lenders do an analysis for you. This is a simple calculator meant to give you guidance on what price range to focus on!

What amount do you have in cash to withdraw and invest in a pet care facility purchase:

Please do not consider loans from family, friends, etc. or a line of credit against your house. The equity injection has to be cold hard cash that you currently have in a banking or investment account immediately available to you.

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