Cash left in transaction

by a searcher

2 years ago

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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2 comments

lender from Eastern Illinois University

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 --@----.com

2 years ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

Need clarity. Do you have a "seller" or a "buyer"?

2 years ago | like reply | 0 likes

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