Debt options to acquire loss making business?

searcher profile

May 03, 2021

by a searcher from Duke University - The Fuqua School of Business in Raleigh, NC, USA

Hello,

I am curious to know what debt options are out there to acquire loss making small business (COVID impacted).

It looks like SBA is not an option (if the business has not had cash flows in 2 years).

If debt is not an option, what kind of models / structuring options would you look at?

Thanks!

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commentor profile
Reply by a lender
from St. Mary's College of California in San Francisco, CA, USA
We are a direct lender that lends off of a royalty structure based on top line revenue/gross margin trends. Ticket size $100K to $600K - let me know if that's of use. Direct email is redacted
commentor profile
Reply by a searcher
from University of Virginia in Charlottesville, VA, USA
Just a thought here but if the company is losing money you really shouldn't pay more than book value for any assets. Could you do some sort of and earn out?
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