Interest Rates are Low and Banks Are More Aggressive

We spent the better part of 2009 and 2010 trying to chase bankers who were not returning phone calls. There were many banks changing hands and were not able to pursue loans for business acquisitions. Over the last year, we have witnessed banks being more “aggressive” in seeking business clients. They have money that they need to loan and they are looking to Apex for deals to fund. Bankers are not throwing money around, and they are still conservative. However, they need to make loans to be profitable.

The interest rate for a 10 year, business acquisition loan is as low as 5.5%. This is about the lowest rate that we have ever seen. We have done quite a bit of business with Wells Fargo and there is a lot of good information about SBA loans here.

These two factors, aggressive banks and low interest rates, are creating an environment where deals are getting done. The people that will gain the most are business owners needing working capital and equipment loans, and for buyers of businesses that need to borrow money to fund an acquisition.

An important part of our job as advisor is to help you find funding for your deal and working with the banks to get them the information they need to make good decisions. Call one of our brokers today to learn more.