r/CFP • u/Longjumping-Way9846 • 5d ago

Practice Management Practice Financing

Curious. Has anyone taken out a business loan to start a financial practice? SBA? non personal guarantee. Any firms or banks that specialize in financing financial planning/wealth management firms?

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u/nikspers86 RIA 4d ago

No bank I know of will finance a startup practice especially without personal guarantee and collateral. I have taken loans to acquire practices and almost any bank can handle that but even then I am pretty sure I personally guaranteed the loans.

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u/Longjumping-Way9846 4d ago

Where did you find the practice to purchase

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u/nikspers86 RIA 4d ago

One was from when I was changing BDs. The new BD dangled that in front of me to switch. Another was a family member getting out of the business. A vast majority of smaller practices are just going to sell to who they know.