LOI advice - Asset light, business services, no seller financing

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by a searcher from United States Naval Academy in Concord, NC, USA

2yrs ago

LOI advice - Asset light, business services, no seller financing

Does anyone have advice or examples on best approach for structuring an LOI when seller will not entertain seller financing and business is asset light, business/consulting services (low start-up costs)? I am concerned with not having seller financing as a tool to help mitigate risk.

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Reply by a lender 2yrs ago
from University of Missouri in Denver, CO, USA

Hi, with SBA you cannot do earnouts as mentioned above but you can do buyer rebates based on certain metrics decided upon by you and seller. If you are in need of SBA financing, please feel free to reach me here or at redacted

Reply by a professional 1yr ago
in Crystal Bay, NV, USA

I often recommend a royalty structure or a contract of sale structure in situations like this. Fix the price and allow the future income drive the repayment as a % of revenue.

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