Does anyone have experience buying a Invoice Factoring Business

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January 06, 2023

by a searcher from University of Kansas in Kansas City, MO, USA

Does anyone have experience buying an Invoice Factoring Business utilizing some portion of debt (+ seller financing)?

I am working on purchasing a >15 year year-old invoice factoring business. The business is focused on serving small-to-mid size staffing firms (primarily healthcare). The owner is willing to finance ~50% of the transaction value via a sellers note, but would like to have a meaningful liquidity event on the front-end of the sale. They seller is willing to continue in the business full-time for up to 18 months, and then consult for another 18 months.

Cursory review suggests SBA is not an option, and few Banks/BDCs/etc. seem to have an appetite for this sector.

Please share any thought or feedback. Thanks!

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