Funding an Acquisition: How did you approach the down payment?

by a searcher from Indiana University (System)

3 weeks ago

		For those who have acquired a business using an SBA loan, how did you approach funding the down payment? Did you use personal funds, bring in outside investors, or find other creative financing solutions? Looking back, would you make the same decision again? Any lessons learned would be greatly appreciated as I am looking at acquiring a business in the near term.

Thanks, 

Trent

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searcher from College of William and Mary - Raymond A. Mason School of Business

I used personal funds on a prior deal. I have lined up potential investors but hope to avoid given experience in other deals. I am interested in potentially accessing my 401K but have not gone down through the process yet. Following for additional insight.

2 weeks ago | like reply | 0 likes

searcher from Baruch College-The City University of New York - The Zicklin School of Business

Hello Ishan, I have a similar question. Are personal funds required to service the SBA debt? The seller is willing to put down 5% roll over equity, and I have an investor that will put down 10%. Banks are telling me I need to put something down for the equity portion. How do I get around this?

3 weeks ago | like reply | 0 likes

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