Cash flow based lending question

by a searcher from Skidmore College

3 years ago

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!

0 likes
126 views
5 comments

professional from Philadelphia University

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

3 years ago | like reply | 0 likes

lender from California State University, Sacramento - College of Business Administration

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.

3 years ago | like reply | 1 like

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.