Know what you can buy
before you chase the deal.
A practical, 3-minute read on what your cash, credit, and target price actually support — before you email brokers, sign NDAs, and fall for a listing you can't finance.
Check my buying rangeAnswer these before a lender does — not after.
- How much business can I really buy?
- Will SBA financing work for me?
- How much cash do I need?
- What deal size should I target?
- Will a broker take me seriously?
Down payment, in plain terms
A complete change of ownership generally requires a 10% injection against total project cost. Seller debt may cover no more than half of that requirement only when it is on full standby for the life of the SBA loan. The check models the buyer's cash range; the lender confirms final treatment.
The actual capital stack is based on total project cost and lender underwriting. Seller debt not credited toward the required injection may still be approved as subordinated debt, but it does not replace qualifying equity and may add debt service. The SBA 7(a) program caps an individual loan at $5 million.
What we review
Cash to close, credit range, net worth, experience — plus your target's price, cash flow, industry, and seller-financing need.
What you receive
A first-pass snapshot: a realistic target-size range, the likely gap, and a clear next step. For strong profiles, a path to a Preliminary Buyer Readiness Letter.
What it is not
Not a loan approval, pre-approval, commitment, or guarantee — and not a credit pull. It's a readiness review to save you months on the wrong deals.
$100K cash · $1M target
- Issue
- The buyer may cover an illustrative 10% injection but still lacks cushion for fees, working capital, and post-close liquidity.
- Our read
- Possibly workable after total project cost and reserves are verified.
- Lender concern
- Required injection, source of funds, post-close liquidity.
- Next step
- Model qualifying buyer equity and any seller debt under current lender-approved terms.
$900K target · ~$450K financeable
- Issue
- Cash flow and collateral don't support the asking price.
- Our read
- The gap is too wide as priced.
- Lender concern
- DSCR, valuation support.
- Next step
- Renegotiate price or layer in seller financing.
Add-backs don't reconcile to tax returns
- Issue
- Adjusted earnings can't yet be substantiated.
- Our read
- Financeable amount likely sits below asking until proven.
- Lender concern
- SDE support, quality of earnings.
- Next step
- Substantiate add-backs before signing an LOI.
Illustrative, anonymized scenarios for explanation only — not offers, approvals, or predictions of outcome.
No. A financeability read is a first-pass assessment — not a loan approval, pre-approval, or commitment to lend. Lenders make all credit decisions after reviewing the full application, tax returns, business financials, collateral, and SBA eligibility. What the check gives you is a clear read on whether the basic structure — your cash, credit, experience, and target price — is in a range that lenders typically work with. If the basics look weak, you know before you waste an LOI or a seller’s time.
No. There is no credit pull of any kind. The check asks for your general credit tier (excellent, good, fair, or below fair) — you self-report. No hard inquiry, no soft pull, no impact on your credit score. SBA lenders will pull credit during actual underwriting, but Emporio never does. You can run the check as many times as you want with no credit consequence.
It depends on three things: the target business’s cash flow (SDE or EBITDA), your equity contribution, and lender criteria. The check gives you a realistic range based on those inputs — not a number a lender has committed to. Many SBA acquisition lenders use 1.25x as a preliminary DSCR planning benchmark, but lender policy, eligible cash flow, and required coverage vary. The SBA 7(a) program caps an individual loan at $5 million. Your actual borrowing capacity is the lower of what your cash supports as an equity injection and what the business cash flow supports under the selected lender’s analysis.
A complete change of ownership generally requires a 10% equity injection measured against total project cost, not automatically purchase price alone. Seller debt may account for no more than half of the required injection only when it is on full standby for the life of the SBA loan. The remaining qualifying injection, closing costs, deposits, working capital, and post-close reserves still need to be funded and documented. The lender determines the final injection, eligible sources, fees, and cash-to-close requirement.
Sometimes. Most SBA lenders read ‘relevant experience’ broadly — relevant industry background, management experience, or transferable skills from adjacent fields can qualify. Lenders are primarily concerned with whether you can run the business and service the debt. A detailed transition plan and seller training period can offset thinner experience. The check flags whether experience is likely to be a lender concern for your specific target industry, and notes when it is a significant gap versus a manageable one.
Yes, and that is one of the most useful times to run the check. Under-LOI situations get fast-tracked. We review whether the deal structure — price, cash flow, equity, and any seller note — supports SBA financing, flag lender concerns before you spend money on due diligence, and help you decide whether to renegotiate terms or walk. A financing problem found before the LOI expires is fixable. One found after closing is not.