On the plus side for our industry, attractive conventional M&A financing options are on the rise from a select group of progressive community and national banks. Indeed, the recent expansion of conventional financing may signal why the top SBA lenders have stalled lately. In addition to lower rates, more conventional loans mean that advisors can get liens removed from their homes and break through the $5 million cap that covers all SBA loans.
Back On Track
Thanks to the expanded funding options we ultimately obtained, we are on track with our acquisition-based growth strategy and are planning to close our fifth acquisition in early 2019. Most importantly, we have a healthy capital base and cash flow that allows us to continue focusing on the well-being of our clients instead of being preoccupied with our own debt.
As any financial advisor knows, excelling in this industry requires total concentration and long-term commitment to the clients. What too often goes unsaid is how much something as common as securing a business loan can become a hindrance on the business itself. Thanks to our decision to refinance, we were able to avoid what could have been a real distraction.
Our experience tells us there is a substantial need among financial advisors for more favorable conventional loan structures, superior distribution and service compared to current industry participants. Fortunately, there is a way out of this maze, with the rise of correspondent lenders who combine a deep knowledge of our industry with access to enhanced service as well as conventional loans with superior terms for borrowers.
Matthew Davis is CEO of Boston Harbor Wealth Advisors, an independent financial planning and wealth management firm with approximately $925 million in client assets and 21 financial advisors. Meredith Huff, CPA, is director of finance at Boston Harbor Wealth Advisors.