Concerns re. a personal loan guarantee?

searcher profile

October 16, 2020

by a searcher from New York University - Leonard N. Stern School of Business in Glen Rock, NJ 07452, USA

Are there alternatives other than larger equity check? I am targeting deals that are willing to have a 20-25% seller note, but am concerned about personally guaranteeing any loan that is 60-70% of purchase price.

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Reply by a searcher
from University of Texas at Austin in Lexington, KY, USA
I'm guessing you are looking to do something self-funded with that loan size? I'd say if you are confident enough to make the purchase then you should be confident enough to put yourself behind it. There are also ways to limit what assets a personal guarantee can come after.
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Reply by a lender
from The University of Michigan in District of Columbia, USA
If you purchase a business with assets that significantly exceed the loan amount then maybe you can get around a PG with non-SBA debt funding. Or at least have a more limited guarantee.
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