Does AdvisorLoans provide free loan pre-qualifications?

Yes, this is a free service we provide advisors. We provide phone/zoom consultation conversations to determine any issues or red flags that we would see with your loan. If we are confident we can get your loan funded and you want to utilize our services, then we’ll have you complete an application and upload tax returns, AUM/Revenue report, and additional items based on the consultation discovery. SBA pre-qualification proposals from our lenders takes 1-2 days and conventional lenders takes 2-7 business days.

Why is it important to get prequalified early?

We think getting prequalified for an acquisition loan should be the first step a prospective buyer takes. Our pre-qualification process reveals the loan amount a buyer will likely qualify for (both with and without a down payment) and if the buyer would likely qualify for conventional, SBA or both.

If a buyer only qualifies, or prefers, an SBA loan then the acquisition deal structure must comply with SBA rules. We’ve seen deals implode in the end when the buyer neglected to do proper financing due diligence in the beginning.

Documents needed for pre-qualification?

Applicant(s) for all Loans:

• Application
• Practice Performance Statement
• 2024, 2023, and 2022 personal/business tax returns
• 2024 P&L and Balance Sheet (if 2024 is on extension)
• 2025 Interim Financials

For Any Acquisition:

• Letter of Intent or deal terms
• Pro forma

Sell-Side: If you have a book/practice identified to pre-qualify against then these are the initial docs needed.

Partial Book:

• Report showing seller’s total AUM
• Amount of AUM/Revenue being sold
• Percentage of revenue in recurring revenue
• Any associated costs buyer will incur

For Complete Asset/Equity Acquisition:

• Add 2024, 2023, 2022 Tax returns or Schedule Cs

What if I have already been declined by another lender?

We are often able to get loans approved and funded that other lenders aren’t able or willing to do.

One reason for this is because we utilize lenders that have wider qualifying criteria than other lenders. Another reason is because of our willingness to dig in and develop workarounds, or help to restructure a solution that can get financing approved.

We know bank rejections can be frustrating and even stressful when an acquisition deal is on the line. Get a second opinion from AdvisorLoans, we’ll quickly be able to tell you what we can do.

What if I've already been prequalified by another lender?

We are often able to get our clients loans with more structure flexibility and more reasonable ongoing covenants than our competitors. For SBA loans, we can usually get up to 50% more lending dollars than what most Wealth Advisors receive elsewhere.

Most all the loans we facilitate are 100% bank financed 10 year term loans that do not require borrower down payments, seller financing, or a seller guaranty.

Do you already have a term sheet but would like to see if we can offer a more ideal structure that better meets your goals and expectations? We can provide a second opinion.