non-SBA loans to buy business with <1.5M EV

by a searcher from Harvard University - Harvard Business School

1 year ago

I'm looking to buy a couple franchises (EV $1.2M) however, as I'm living in the US on an H1B, I do not have access to SBA loans. Any recommendations for non-SBA banks loaning ~2.5x EBITDA for M&A? As an FYI; I'm living in Massachusetts and the business is producing 350k in FCF.

1 like
108 views
4 comments

searcher from University of Nevada - Reno

If the business has credit card transactions you can use a merchant lender and get cash from this as well. You can also look at a loan through the AR via factoring. There are a few points of leverage you can look at.

1 year ago | like reply | 0 likes

searcher from University of Nevada - Reno

Does the business have fixed assets like equipment, trucks, heavy machinery etc? Can always look at an ABL and leverage the assets to get cash at close. Have the seller hold a note for the rest.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.