AVOIDING PERSONAL GUARANTEES FOR BANK LOANS?
I am new to the search fund space, but my partner and I are looking to buy a service company $5M in annual revenue $1M in cash flow. Looking at 4-year loan pay-back period. So far banks require a Personal Guaranty. Are there lenders who will loan against solid equity contribution and strong cash flow?
Why are you and your partner afraid of the PG? If you are willing to contribute 30%+ equity and believe in the viability of the business, aside from a horrific black swan event you should never have to worry about defaulting on the loan. SBA all day and spend a little more on good life insurance policies for the both of you.