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The BAL program helps provide financial support to advisors looking to expand their businesses through succession planning and portfolio acquisition strategies. If you're looking to buy a book of business to grow your practice, a BAL might be an ideal fit for you.
If you're looking to sell part or all your existing block of clients, it might be a better alternative to help the purchasing advisor finance through a BAL rather than extending a personal loan to the buyer.
Manulife Bank offers Quick and Standard versions of the BAL. Some of the differences between the two are listed below.
Quick BAL: Not applicable*
Standard BAL: EBITDA** divided by all principal and interest payments needs to be at least 120%.
* Approximately $30,000 in Manulife renewal trailer income is required for every $100,000 in loan amount. This can be in your practice combined with the book being purchased.
** Net income after tax
Monthly fixed principal plus floating interest
Quick BAL
The minimum loan is $100,000 and the maximum is $250,000.
Standard BAL
The minimum loan is $250,000 and the maximum is $10,000,000.
Quick BAL
80% financing
Standard BAL
85% financing for loans between $250,000 and $1,000,000. 90% financing for loans above $1,000,000.
Quick BAL
Floating prime +2%
Standard BAL
Floating prime +1.5% for loans between $250,000 and $1,000,000. Floating prime +1% for loans above $1,000,000.
Quick BAL
- Application: $1,000
- Annual Review: No fee
- Legal: Applicant is responsible for any legal costs associated with setting up the loan
Standard BAL
- Application: Greater of $1,000 or 25 bps of total loan amount
- Annual Review Fee: $500 (subject to loan size) due upon each anniversary of the initial loan funding
- Legal/Accounting: Applicant is responsible for any legal/accounting costs associated with setting up the loan
Please review the BAL Administration page (log in required) for information on how to apply for a BAL.
For personalized support, find the Private Lending Specialist in your area today.
1 Rates and fees are subject to change.