The PreQual Process by BizWorth is designed with the primary objective of securing conditionally approved financing for businesses through the network of participating lenders. This streamlined process encompasses two essential reports, namely "Part A" and "Part B." Part A, known as the PreQualified Valuation Report, serves as a critical resource for sellers, providing pivotal information to set an appropriate asking price and attract qualified buyers. Lenders utilize this report to carefully assess the company's financials, subsequently granting conditional approval for a loan amount within the loan eligibility range. Upon the selection of a buyer, Part B, the Certified Business Appraisal Report, comes into play, aiding banks in meeting the stringent requirements set by the Small Business Administration (SBA) for extending a loan. The ordering of Part B is seamlessly managed by our network's lenders, requiring no additional information unless there are pertinent changes.
Part A, a focal element of BizWorth's PreQual Process, is specifically tailored for business owners and their advisors, providing comprehensive insights essential for well-informed decision-making throughout the sales process. This report conducts a detailed assessment of the business's value, utilizing market, income, and asset approaches. Owners are empowered to establish informed asking prices, and advisors can offer strategic pricing guidance. Notably, Part A encompasses a loan eligibility range employed by lenders to conditionally approve loan amounts for creditworthy buyers, enhancing the business's appeal in alignment with lenders' criteria.
Furthermore, the report incorporates Loan Payment Affordability, assessing if the company can financially afford to repay borrowed funds. This inclusion provides a holistic understanding of the business's financial health and its eligibility for acquiring or selling. Within a brief timeframe of 10 business days, owners and advisors can expect decision notifications on average of up to three participating lenders, streamlining the evaluation and approval process for potential buyers.
As a business owner or advisor, you can easily request to add a bank to our preferred vendor list by simply completing the form provided at check-out when ordering the report. Simply fill in the required details, including the bank's name and contact information, and submit the form. We'll take care of the rest!
By ordering "Part A" and completing the application process, business owners and advisors grant banks access to the company's tax returns, financials, and information submitted in Part A. All information will be uploaded and accessible to selected lenders via BizWorth’s secure portal.
