Insider secrets to buying and selling a business

Your questions answered

Are there Shariah-compliant financing options available?

At this time, Swoop does not offer Shariah-compliant financing options in the United States or Canada. As we continue to expand our network of lenders and services, we recommend checking back with us in the future to explore new possibilities.

Can Swoop assist with a U.S. or Canadian buyer acquiring an asset or company based in Australia?

This type of cross-border transaction may be more challenging and will have to be evaluated on a case-by-case basis, as it will depend on the type of company and specifics of the deal. If the Australian seller can provide CPA-prepared financial statements and the U.S. or Canadian buyer demonstrates strong personal financial strength, we may be able to make a case.

How can I perform due diligence on a business less than a year old where tax returns are unavailable?

Performing financial due diligence on a newer business can be challenging due to the lack of a track record. In such cases, the purchase price should reflect the limited operational history and profitability. Focus on verifying other critical aspects, such as revenue consistency, growth potential, and market position.

Is it riskier to acquire a business that’s been operating for a short time?

Yes, acquiring a business with a limited history carries higher risk due to its unproven market durability and financial track record. However, you can mitigate this risk by:

• Evaluating the buyer’s experience in the industry and ability to add value.
• Reviewing the business’s growth trajectory and market potential.
• Assessing revenue stability (e.g., subscription-based income).
• Examining early signs of profitability and operational scalability.

How can I improve my chances of getting an SBA loan, and are there alternatives?

To improve SBA funding success:

• Ensure you meet the SBA’s underwriting criteria, including business profitability, personal creditworthiness, and a clear business plan.
• Emphasize the financial health and cash flow of the target company.
• Positioning the loan that convinces a lender you’ll be successful in running this business

Alternatives outside of the SBA include private lenders, banks, asset-backed loans, or revenue-based financing. Swoop can support you with your SBA application or help you explore tailored solutions to meet your needs when the SBA isn’t a fit. Get started with Swoop.

What level of leverage or down payment is typically required for financing through Swoop?

Swoop is a marketplace that connects you to a range of funding options rather than a direct lender. Down payments vary depending on the lender and the asset. For business acquisitions, down payments typically start at 10%, but some lenders may offer financing for up to 100% of the asset cost with the right structure or asset type. Get started with Swoop to explore your funding options.

Can Swoop help a Canadian buyer purchasing a U.S.-based business?

Yes, Swoop can help. We have access to working capital lenders who may not require personal guarantees or personal credit and instead base their decision on the business’s financial performance. Get started with Swoop to learn more about funding solutions tailored to your situation.

Does Swoop offer insurance solutions for business buyers?

Yes, insurance is a critical part of protecting your investment. Swoop can connect you with insurance providers to ensure you have the right coverage for your acquisition. Explore business insurance options with Swoop today.

What support does Swoop provide for starting a new business?

Swoop offers comprehensive support to help you launch and grow your business:

• Funding Options: Access tailored funding, including government-backed startup loans, private loans, and equity investment opportunities.
• Growth Capital: Once established, Swoop helps you secure funding for working capital, lines of credit, or long-term solutions.
• Resources: Get connected with partners for business plan writing, registration, insurance, and more.

Get started to access the tools and resources you need to succeed.