A request through this site is no credit application, though a partner may check credit while it reviews. Buying a going concern can be requested as a term loan for its business side. Tax treatment of interest is a question for a tax preparer. Lines run for a term and can be reviewed at renewal. What counts as collateral is set by each partner for each product.
A Request Through Heathfield Is Not a Credit Application: Where a Credit Check Can Come In
Neither the request form nor a call to Heathfield counts as a credit application. The form passes contact details and three ranges so someone can call back.
A funding partner may check the owner's credit, or the business's, during its own review. Any check belongs to that review, and its terms come from the partner, not from this site. Several partners reviewing the same request may each run their own check.
Can I Get a Loan to Buy a Business? A Jackson, WY Engineering Firm Taking Over a Retiring Competitor's Clients
Yes, a purchase can be requested as a term loan, whether it is a whole business, a client book or a partner's share. The loan covers the business side: equipment, client relationships and goodwill, stock and some working capital. Any building or land in the deal falls outside what this site handles.
Illustration only, invented figures: a Jackson, WY engineering firm agrees to buy a retiring competitor's client contracts and project files for $212,000. Eight years of monthly installments (96 of them) at 10.05% a year set each payment at $3,222.53. The 96 payments total $309,362.88, so the interest over eight years is $97,362.88. The buying firm's fees, including those from the added clients, have to carry that payment.
A partner reviewing a purchase may ask for the purchase agreement, the seller's tax returns and a list of what is included. The term loans page works through a different case, a partner buying out another partner at a design practice.
Is a Line of Credit Tax Deductible? Tracing the Interest on a Plant Stock Draw
A line of credit has two parts: the money drawn and paid back, and the interest charged while a balance is open. Whether any of it can be deducted, and how, is a question for the owner's tax preparer; this site gives no tax advice. What the owner can do is keep the interest charges separate in the books.
Illustration only, invented figures: a landscaping company draws $14,800 on its line to buy plant stock for a job. If the line charges 12.6% a year on the open balance and nothing is paid down for two months, the interest is $155.40 a month, or $310.80 over the two months. That interest line on the statement is the figure to hand the tax preparer; the $14,800 draw itself is the stock purchase.
How Long Is a Line of Credit Good For? What Sets the End Date on a Teton County, WY Credit Line
A business line of credit has a term written into its agreement. During the draw period the business can borrow, pay down and borrow again up to the limit. At the end of that period, the agreement says what comes next.
- The partner may renew the line for another term after reviewing the business again.
- The limit can be raised, lowered or left as it is at renewal.
- Some lines turn any balance left at the end into fixed payments over a set time.
- A partner can also reduce or close a line under the terms of the agreement.
For a Teton County, WY business that leans on its line, the renewal date belongs on the calendar beside the insurance renewal. Ask what records the partner reviews at renewal, and keep them current.
Need Collateral? What a Jackson, WY Lodge Could Put Up for a Business Loan
No single rule covers a lodge; what can be pledged shifts from one product to the next and from one partner to another. A lodge has several kinds of assets a partner may accept: in-room appliances, laundry machines, keycard lock sets and booking systems, plus receivables and cash in the bank. For equipment financing, the machine bought is the collateral. For a term loan or a line, a partner may ask for a general lien on business assets.
A partner may also ask the owner to sign for the debt personally. The lodge building and land are property and sit outside this site, so they are not part of a request here. Smaller requests may need less security than larger ones, but that is the partner's call.
By Heathfield Commercial Capital · Updated
