Good Financing Is Just Good Business

Richard Zoppo was already running a successful New Jersey pest control company when he discovered a tempting second route for sale. By jumping on die opportunity, he could double his business, expand to new territories, and garner more clients — all for an asking price of $35,000. Zoppo told that fine story to the bank where his business account had been growing for more than five years. He spent about $500 and weeks of preparation to have his accountant complete a loan request that included tax returns from both businesses, profit-and-loss gfgbhistories, and a plan for integrating the two routes. He submitted the request, and waited. And waited, and… about two weeks later, the loan officer called to say, “I never saw such a nice proposal. Who’s your accountant? And, by the way, we’re not going to give you the money.”

Another bank request, another few weeks, and another resounding “No.” Zoppo was getting desperate, but lucky for him, so was the motivated seller. “Why don’t I just lend you the money?” the seller asked. With that, a successful deal was struck. The two exterminators drew up an agreement that gave Zoppo a five-year, 9 percent loan — and both walked away happy. “It’s better this way,” says Zoppo. “I’d rather pay him than a bank anyway.”

Not that he had a choice. The sad truth is Continue reading