Looking for non-SBA lenders on a $4.2M deal, with EBITDA of $1.10M.

searcher profile

January 08, 2021

by a searcher from Columbia University - Columbia Business School in Princeton, NJ, USA

I have a signed LOI for a $4.2M deal, EBITDA of $1.10M. Looking at several options to fund the dea, closing end of Q1 2021l. Are there any non SBA options?

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commentor profile
Reply by a searcher
in Boulder, CO, USA
You can try going the route of traditional bank financing, but that is often harder to come by for a new business acquisition unless you have an established reputation with the bank and clear experience in a similar business. The underlying business itself is also more heavily scrutinized with regards to the stability of its cash flows, if it has any physical assets that the debt can be secured against, etc. If you are having trouble funding with debt, then the best option may be to bring on additional equity investors that can provide you the cash in exchange for common or preferred shares (e.g., friends and family or small-cap PE funds).
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Reply by an investor
from University of Pennsylvania in Washington, DC, USA
Use the search bar in top left and search "non SBA" - there's a number of threads with similar questions with good responses (including many from lenders). Short answer - lots of the SBA lenders also do non-SBA options for deals as well and they can walk you through them.
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