Snap Car Buying
Borrower : Snap Car Buying, Inc.
Where : Chantilly, VA
Loan Amount : $1.06 million
Project Type : SBA 7(a) Business Acquisition
Opportunity
Snap Car Buying Inc. is a Chantilly auto dealership that sells higher-end used vehicles at competitive prices. Most of its cars come from auctions and are bought in near perfect condition, found by an experienced buyer who has been in the industry for nearly two decades. Snap understands that most prospective buyers start the car-buying process online, so in lieu of a flashy showroom, the company maintains a clean indoor warehouse, makes the process hassle-free, and provides salespeople with reasonable compensation. This allows Snap to sell premium cars at closer to a wholesale price.
The manager of Snap, Alexandra Semyonov, has served in that role since the business opened in 2013. While profitable and successful, Snap owner Eiman Bassam has other businesses that were requiring more of his attention. So if the innovative dealership was to continue, Snap needed its next ownership generation to step in and maintain focus on the business and oversee day-to-day operations.
Alexandra is a nine-year veteran of the auto industry, holds an MS in finance from Georgetown University, and saw Snap as a safe investment to generate revenue and security for her family. So she offered to buy the business from Eiman – but needed the money to make it happen. That’s where VCC came in.
Impact
The $1.06 million loan from VCC allowed Alexandra to purchase the business, preserving good jobs for eight people and setting her family up with financial security for the foreseeable future.
Snap’s loan is also a Small Business Administration-backed loan, meaning that even with the due diligence VCC put into the auto dealership, we are still guaranteed repayment in the event of a default. SBA loans reduce risk for lenders and make it easier for businesses to access the capital required to grow.
Solution
SBA 7(a) Small Business Acquisition Loan
VCC is a SBA-Preferred Lending Partner in Virginia, and therefore has the option to use our authority to expedite the approval process for these federally backed loans. Our Loan Officers are trained in SBA eligibility and can save time upfront on structuring the best option for borrowers such as Snap. For these reasons, VCC has become a top SBA lender in Virginia. Our staff also has expertise in USDA and other loan-guarantee programs.