A quick closing was crucial to our clients. They had negotiated a purchase sale agreement (PSA) with the seller. This PSA stipulated a set time for closing. Any delays would require an additional fee to be paid to the seller. As a result, GRP Capital turned to our trusted lenders’ network. In our search, we emphasized the need for a quick closing. We already knew our clients well, as they were repeat customers. But the loan was still complicated with multiple partners, each with large business portfolios. It took a full court press from all of our GRP Capital team to achieve this fast closing.
GRP Capital President Rick Patel worked closely with the multiple partners and the lender to secure this complex, high value loan for our clients. Our clients now have a conventional loan with competitive rates.
Keys to a Fast Closing:
• Organized finances: We had worked with the clients’ certified public accountant (CPA) before. As a result, we knew that he could obtain documents quickly. These included up-to-date financials for the borrowing entity and all of the partners’ affiliate businesses (if they owned 20% or more of them). We could not have achieved a quick closing without our partnership with the clients’ CPA. Disorganization can delay closings.
• Motivated sellers: Some clients think that it is only the buyers that have to provide documents. That is not the case. Sellers also have to provide financials, including up to date business statistics. In addition, the underwriter requires independent confirmation of these documents, sometimes through sales tax receipts. If a business has a Small Business Administration Economic Injury Disaster Loan, the lender requires even more documents. Lenders typically request promissory notes and will require that EIDL’s be paid off at or before closing.
• Organized Equity Injection: GRP Capital worked with the partners to identify the best bank accounts to use for the equity injection. These accounts were “clean”, which means without large deposits from outside sources. Submitting equity information early in the underwriting process prevents delays.
Rick Patel remarked, “To be honest, this loan was a challenge. The clients had an abbreviated timeframe. But the combination of our long-term relationship with the clients and their professionals (lawyers and accountants) helped us achieve a quick close. Lots of communication and dedication to serving our clients were critical.”
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.