FINANCING STRUCTURES FOR NON-SBA ELIGIBLE CASH FLOW BUSINESSES?
Interested in understanding financing structures for cashflow SaaS businesses that are not SBA eligible (partner/partial buyout). Traditional financing terms I have heard would be a cap of 3X EBITDA at 6-14%, which seems very expensive. I am reviewing a B2B SaaS business with EBITDA of $1.5MM, 20% margin, proposed price 4x to 8x, 95% customer retention, recurring revenue model, and growing market. Interested in financing the transaction through combination of debt and equity.