Mastering Cashflow and Add-Backs: Unlocking SBA Financing Opportunities

Mastering Cashflow and Add-Backs: Unlocking SBA Financing Opportunities

Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble

Cashflow and add-backs are crucial in business acquisition and SBA loan financing. Add-backs are expenses that can be adjusted to improve the cash flow projections for SBA loan underwriting.

Working with an experienced team can help identify and document add-backs to make the cash flow numbers more favorable.

Ad-backs can include expenses like personal vehicle usage, family member salaries, and unnecessary costs that won't be incurred after the acquisition. Annual cash flow, along with add-backs and historical trends, is essential for evaluating the financial viability of a business and navigating the SBA underwriting process successfully.

Timestamps:
(00:18) Identifying add-backs and their importance in SBA financing
(00:52) Example scenario of a laundromat acquisition and add-backs
(01:54) Collaboration with the seller's CPA to document add-backs
(02:23) The importance of annual cash flow in buying small businesses
(02:47) Role of professional business brokers and advisors in evaluating yearly cash flow and ad backs during due diligence and the SBA loan process
(03:11) Importance of annual cash flow in ensuring sufficient funds for lender's repayment and buyer's living expenses
(03:29) Visit franuniversity.com for those interested in franchise ownership and the benefits of joining the training program
(04:07) Typical financial add-backs used to compute the annual cash flow
(05:24) Consideration of historical trends in annual cash flows by lenders and buyers
(05:55) Summary of the importance of yearly cash flow, add-backs, and historical trends in the SBA underwriting process
(06:32) Importance of thorough investigation and documentation of add-backs for SBA loan approval
(07:13) Book a call at http://bookwithbeau.com/ for SBA and commercial financing questions

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

💥 Thanks for watching 💥
#sbafinancing #addbacks #cashflow

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.