Acquisition Loans in Kansas City
Cornerstone Bank’s dedication to customer service over the years has made us a premier acquisition lender in Kansas City.
Education is a key piece of our customer service. By providing insights on all-things banking, we hope to help our community become more informed of the various options and tools available to them.
First, what is an acquisition loan and how can it help me?
An acquisition loan is a very important tool that businesses across a variety of industries use in order to purchase a specific product or asset.
Acquisition loans are short-term solutions for businesses to be able to utilize additional financial resources in order to make a specific purchase.
Many business owners, including Cornerstone Bank, understand that ownership of an asset is the smarter choice—making a purchase on an asset rather than leasing it is much more cost effective in the long term.
Additionally, when businesses have access to short-term capital, they are able to finance assets for their business that they would otherwise not have the money to do. This can help them grow their practice and pay back the loan in a short amount of time.
For example, as a medical lender in Kansas City, we can provide an acquisition loan to an ophthalmologist in order to purchase a new retinal camera to help accommodate an increase in retina patients and help decrease wait times.
Therefore, while an acquisition loan may be short-term, many acquisition loan recipients in Kansas City reap the benefits for years to come.
How does an acquisition loan work?
First, the loan applicant will provide all of the necessary documents in order to apply for the capital. This will include the business’s bank statements for about two years prior. We will also check your credit history and ensure financial responsibility on the part of the business.
Then, we will need documentation on the cost of the asset you are looking to purchase with the loan.
The assets being purchased by the loan should have a tangible value. This is what we will use as collateral for the loan. In this sense, an acquisition loan in Kansas City can look very similar to a car loan or home loan.
Having a set plan for the length of the loan, as well as the cost-benefits of acquiring the asset, will provide additional information for our lenders to be able to assess the risk of the loan.
What else can acquisition loans be used for?
An additional use of an acquisition loan could be the purchase of an entire company, such as the case of a merger. The loan applicant should determine the value of the acquired company’s assets in order to determine the value of the loan. Again, this will act as collateral of the loan amount.
From commercial lending to personal checking, trust Cornerstone Bank to take care of it all.
If you’re looking for an acquisition loan in Kansas City or the surrounding areas, reach out to Cornerstone Bank today. You can even try out our Loan Tool to see which option may be the best fit for your business!