What size do banks start to consider cash flow loans?

Hey Brendan -- Former banker here. Generally speaking for an acquisition term loan, most regional banks would do a cash flow loan on a sub-$3MM EBITDA target IF the deal is fully secured. This implies that the company you're buying is relatively asset-heavy, particularly tangible, longer-term stuff like machinery and equipment, and that these assets are unencumbered by any existing debt. No surprise -- this scenario is pretty rare. However, everything changes if you're targeting a business that is generating north of $5MM in EBITDA. All things considered, a large percentage of banks would be able to underwrite a business of this size based on a combination of unencumbered asset value AND enterprise value. Said differently: banks would be more willing to pull relevant comps that have transacted recently to help establish a baseline enterprise value of your target business. Assuming the banks could find reliable comps, the deal may not need to be fully secured, which means potentially no Personal Guarantee is needed from you. As you might imagine, the moment you look for companies north of $5MM in EBITDA, you should expect much more buy-side competition. There are LOADS more factors than I mentioned but hopefully this helps guide your thinking. Best -- Grant

Depends but they are out there at even $10K / month but HIGH risk so HIGH rate. The traditional players are going to not even give you a look. They are typically:
Revenue - just ask them what their min floor is EBITDA - Positive and consistent EBITDA to service debt is your goal. Debt Service Coverage Ratio (DSCR) - 1.2x Collateral - own any physical assets? That is a big help but big risk on your end.