An Online Business is no different from any other business
which offers a service and has little or no “hard assets”.
Its about longevity and net cash flow (along with additional collateral from the Buyer)
The business needs to be active for more then twelve (12) months and show net income which will support the loan amount for the purchase.
Usually the underwriting requirement is the net income must show 15 – 25% more then the actual principal and interest to be paid (this is called the DSCR – Debt Service Cover Ratio).
Note: Some SBA Lenders want a business to be active for two to three years before it is considered stable.
If the business net income cannot support the loan amount needed, then a buyer can still purchase the business – but it will be considered “still” in the start up stage.
The difference is: A “mature” business will require 10% – 15% down payment and a start up will require a 20% down payment. (The Seller can take back a note for some of this down payment in lieu of receiving cash from the Buyer – Lenders usually want the Buyer to have 5% – 10% cash into a transaction as described)
PLUS – many SBA Lenders will require 25% to 50% of the loan be secured with other assets of the Buyer. Especially where the business itself only has value based on the cash flow or “intellectual property” and not intrinsic (hard) assets.
You will need to work with a seasoned SBA Professional to sought out the many details of a transaction like this one and put together a sound submission for an SBA Lender.