Cash Flow Based Lending Question

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11/23/2020 Redacted Redacted

searcher Skidmore College

Is there a guidepost for the minimum size business a bank will lend to without collateral or PG behind hit?  For example, $200k annual EBITDA / SDE delivered over the past 5 years.  I imagine it varies by business and also by lender, but any general guidance is much appreciated.

Thank you all!

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searcher The University of Chicago - Booth School of Business Indiana University at Bloomington City University of Hong Kong - 11/23/2020

For small businesses, the SBA will grant loans like this without collateral. They will ask for a PG.

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lender Sam Houston State University - College of Business Administration - 11/24/2020

All lender have different guidelines so this would fit somewhere. We stay above a $500,000 loan amount but there are many lenders that will go lower. Reach out if you need some assistance. I'm happy to help.

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searcher Cornell University - 11/24/2020

I am looking for Non PG loans for 500k cash flow - in the fire suppression business in new england if people know anyone - Provident Bank is the only one considering cash flow loans of this size that I know

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lender California State University, Sacramento - College of Business Administration - 11/24/2020

Live Oak Bank is a cashflow lender on asset-lite transactions. We don't have any stated maximum goodwill limitations. We're a nationwide SBA and conventional lender. The nation's #1 SBA lender, by the way. For Non-recourse lending with EBITDA's of this smaller size, we'd likely provide lower turn's of EBITDA and we'd want to be comfortable with the sponsor.

like reply | 1 like

professional Philadelphia University - 11/25/2020

Have had clients that have used Live Oak Bank and they come very recommended.

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