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

by a searcher from Harvard University - Harvard Business School

Apr 07,2023

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.

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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.

04/08/2023 | 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.

04/08/2023 | like reply | 0 likes

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