Alternative Debt Financing - Deal Range 1-5M

searcher profile

March 31, 2022

by a searcher in Dallas, TX, USA

Hello

I found a company off-market.

It's a great company (operationally) & i think there is a lot of long-term potential for growth.

The only issue is the owner never reports a profit on his P&Ls but has a list of add-backs that amount to 600-700K worth of add backs.

Is there any possible way this can qualify for SBA 7 loan? If not, is there any other type of debt financing that can be used to acquire the company?

Thanks

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commentor profile
Reply by a searcher
from New York University in Connecticut, USA
Getting an SBA loan will be challenging given the lack of profit on the financial statements especially if you are looking for maximum debt. You should discuss with the seller his interest in seller financing. After a year you can show the bank the real numbers and look to get normal financing and refi out the seller
commentor profile
Reply by a lender
from Brown University in Greenwich, CT, USA
Hi, I'd love to learn more about this opportunity. $1-5M is right in our sweet spot and I would think we may be able to help. Please feel free to send me a note at - redacted
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