Cash left in transaction

searcher profile

May 29, 2022

by a searcher in Chicago, IL, USA

I have a buyer who is leaving 20% of the transaction value in cash at closing in the bank account plus WC.
Would a bank view this as equity in the capital stack or would they also require a contribution from me in order to provide a loan?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Assuming you mean buyer it really depends on the situation. Most Bank's will do a working capital assessment. If it appears to be a reasonable amount of money to support working capital needs then it probably will not be an issue. We did a deal last year where significant capital had to stay in the company for bonding reasons and that was acceptable. I would be more than happy to discuss your situation at any time. We are a commercial loan brokerage shop. I can be reached at redacted
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Need clarity. Do you have a "seller" or a "buyer"?
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