How to Get Lenders Attention

by a searcher from Upper Iowa University

3 years ago

I'm having trouble getting lending institutions to help me find ways to fund a business with less than 20% cash injection. They don't say that the business doesn't seem viable or that EBITDA isn't high enough.

This would be my first business purchase, and my third attempt at getting funding for a business. I hear a lot about LBO's but can't quite get the numbers right to secure that kind of financing. My credit score is 10 to 20 points below 800, depending on the agency.

Any advice or tools that I could use to maybe help me value a business in a way that would help with securing funds?

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7 comments

searcher from Upper Iowa University

Hi all and thanks for your comments and help.
Here's some quick info on the current business that I'm looking to fund, which is about 200K less that the last two businesses that I worked on financing.
Est. price: $400K
EBITDA: 3 year avg: 90K; 2020 est: 150K based on quarter 3 financials
Type Commercial lawn power equipment, sales and service. B2B (95%); B2C (5%)

I have a little more than 20K in cash, and another 80K that can be liquid within a week.

3 years ago | like reply | 0 likes

professional from Walsh College of Accountancy and Business Administration

If you're going SBA route you should talk to ^LIsa Forrest or ^Heather Endresen at Live Oak Bank. There is a way to have less than 20% down if it is combined with a seller note. Lot's more details on how to make this work, but you need to talk to the bankers to understand all the requirements.

3 years ago | like reply | 0 likes

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