Alternate, no personal guarantee financing

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May 20, 2023

by a searcher in New York, NY, USA

Hey all,

Does anyone have experience raising capital for the purchase of a SMB (sub-$1m TEV) using debt financing sources that don't require a personal guarantee?

So far, Boopos is the only one I've come across and would like to see if there are other options.

Appreciate any guidance.

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commentor profile
Reply by a searcher
from City University of New York, Brooklyn College in Austin, TX, USA
Check this out, https://www.searchfunder.com/post/we-closed-a-deal-my-smb-acquisition-story
In this post, Connor said "It was financed via a combination of conventional non-SBA debt, an earnout, and equity injection."
All the best to you
commentor profile
Reply by an investor
from University of California, Berkeley in San Francisco Bay Area, CA, USA
There is almost no market for such debt. What you are looking for is very high risk and will be too small for most private lenders. Your best bet is use personal savings in combination with a small raise from friends/family and cover the rest with seller debt financing.
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