What is Perpetuation Funding? | Business Perpetuation

What Is Perpetuation Funding?

July 9, 2015

Twenty five years have passed and your vision is now a reality. Long hours, hard work, careful planning, many sacrifices, valuable business advisers and an evolving business plan all have contributed to the success of your thriving business. However, there is another plan that is in place to carry your business through many ups and downs. This plan will continue to carry your business long after you have exited the scene; it’s your business perpetuation plan!

“What is a business perpetuation plan, you ask”? In comparison, a business plan guides the day to day function and activities of the business to help it to become successful. A business perpetuation plan helps the business to remain successful. A perpetuation plan will allow for such things as, changes in ownership, management, downturns in the market or an unforeseen circumstance like the sudden death of the principal. It will help the business to take better advantage of market opportunities and avoid situations that can threaten the growth and survival of a company, when circumstances described as above occur.

The Portland Business Journal reported that on average, 1.5% of all companies survive into the third generation of management. Those business owners without a perpetuation plan in place who wish to retire or companies who experience the unexpected loss of the principal are faced with the grim reality of having to sell the business.

At Perpetuation Funding, we Provide funding for Acquisition, Perpetuation and Capitalization. The average business owner is 59 years old and beginning to think about retirement. Whether a family member, inside management group or outside business - Perpetuation Funding can offer very attractive funding solutions. For qualified buyers, typical terms are 10 year amortization, rate at Prime + 2 ¾ with little or no prepayment penalties. Our sweet spot is 250K - 5M, and can fund down to 50K and as high as 10M. Once we review the Loan Intake Form and pre approve the buyer, we request additional financial information such as 3 yrs Profit & Loss statements, balance sheets and tax returns. Funding is generally in 45 days or less.

Premium Finance Associates

In need of insurance premium financing? Our purpose is to provide superior insurance premium financing services for the property and casualty agent. Insurance premium financing can earn income for agents and maximize cash flow for companies. Premium Finance Associates offers the best premium finance options to agents.

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The Springtree Group

The Springtree Group is a company of entrepreneurs helping entrepreneurs. We offer a full spectrum of Mergers & Acquisition, lending and financial performance services and products to the Insurance Community.

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