Executive Capital Partners - 1st Source in Commercial Funding

Leveraged Buy Out (LBO) Programs

DEFINITION

Company in operation, under new management or ownership, major percentage of ownership change, new division, and new d.b.a., new location for restaurant, new type of industry for existing business.

KEYS USED TO DETERMINE AGE OF BUSINESS PERFORMING LBO

Date commercial bank account was opened, date trade references were established. Date state of business operation has recorded license being issued.

CREDIT TYPES BASED ON CREDIT RATINGS

A= Past 3 years with no derogatory credit from any bank accounts, lines of credit, trade accounts. No reported publics records of unpaid or excessive collections accounts of collections. No recorded liens.

B= Past 3 years no more than 1-2 reports of derogatory credit from any bank accounts, lines of credit, or trade accounts. No reported public records of unpaid or excessive collections. No recorded liens. All accounts must be current.

C= In last year more than 2 reports of derogatory credit from any bank accounts, lines of credit, trade accounts. All unpaid or past due accounts must be brought current.

D= Excessive outstanding derogatory credit from any bank accounts, lines of credit, trade accounts. All unpaid or past due accounts must be brought current.

BANK RATING

Bank ratings will be looking to demonstrate a Daily Average Balance of high 4 figure (8,000+) and no NSFS or Overdrafts in the past 6 mos.

PERSONAL GUARANTEE

The Personal Guarantee of Owners May be Required

Items to Be Submitted With All Applications

Completed Credit Application showing new owners percentage
Current Business Interim Statement (includes Profit & Loss Statement and Balance Sheet)
Past 3 Years Personal Financial Statement(s) & Past 2 Years Personal Tax Return(s) From
All Principal(s) accounting for Up To 66% Ownership
Past 3 Years Year-end Statements, Balance Sheets, Profit & Loss Statements
Past 3 Years Business Tax Statements
List Of Equip. Description, Serial #s, Original Cost, & Copy of Original Invoice if possible.
Appraisal of Equipment May Be Needed At Later Date.

For your convenience, different necessary forms
are available on the download page

Note: Due to the many different banking philosophies, each bank’s credit guidelines may result in a different rating for your specific profile and request. This may affect the actual rate you are offered. All quotes of terms and payments are subject to change, based on final credit approval. Upon final credit approval, you will be offered a final commitment transmittal, which will require your signature as acceptance of terms and conditions.