Closing costs & bonuses

by a searcher

1 year ago

I had a conversation with a banker yesterday regarding a Healthcare deal I have in diligence and he said that I was not able to include Accounting, Attorney or Bonus fees in the transaction.

It is a $3,000,000 transaction and I wanted an extra $300,000 to pay closing fees with. Do banks generally allow closing costs and management bonuses to be added to loans? 

I thought that this was standard practice.
Thank you

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11 comments

professional from University of Pennsylvania - The Wharton School

I think the bank is saying that you have reached the lending limit for the loan (based on collateral and cash flow of the business), rather than specifically telling you that you can't roll in deal costs.

1 week ago | like reply | 0 likes

professional from The Johns Hopkins University

In my experience, it is bank dependent, but advisory costs are usually easier to get approved.

1 year ago | like reply | 1 like

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