Avoiding Bait & Switch With Lenders?

searcher profile

September 17, 2025

by a searcher from Georgia Institute of Technology - Ernest Scheller Jr. College of Business in New York, NY, USA

I’ve received multiple term sheets for an acquisition currently under LOI, but I’m concerned about choosing a lender based just on the most favorable terms only to have them re-trade during underwriting, once my negotiating leverage is gone. Has anyone run into this issue during underwriting and if so how did you handle it? Beyond engaging multiple lenders through underwriting to maintain leverage, are there other strategies people have found to mitigate this risk? For context, the banks I’ve received term sheets from include Live Oak, 44 Business Capital (Berkshire Bank), and BayFirst. I’d also appreciate any other general feedback on experiences working with these lenders.
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commentor profile
Reply by a searcher
from St. Petersburg College in Tampa Bay, Florida, USA
Use a Loan Broker like Pioneer Capital Advisory ^redacted‌ - They cost you nothing, but when a lender issues you a term sheet it means much more. For example, a lender can walk away from your deal for any reason and have no recourse. If a lender walks from a deal repped by a loan broker, they are potentially walking away from dozens of future deals with that loan broker. Just my 2 cents, have been working with Matthias on my search and the whole team is great.
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Reply by a lender
from McMaster University in Burlington, ON, Canada
Thanks Luke. I am based out of Ontario, Canada. So please tailor this for your region. Agree with both Brad and Sean. Would also add that you should assess the lender's track record, depth of due diligence before term sheet, do they have a local credit team/decision-maker or centralized. Hope this helps.
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