How do searchers navigate when brokers require proof of funds to submit an LOI? A lot of searchers are looking for businesses that would be out of reach without outside investor help. There have been brokers who want proof of funds shown before moving forward with the deal. Most searchers don't have $500K+ in funds to show and most investors want to see a deal when it's already under LOI to make commitments. Has anybody had success navigating around this?
More on Searchfunder
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.
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.
But locking up a deal while shopping for funds is not something I would ever advise a seller to do.
In my opinion, if you need outside money to secure the deals you are chasing, you should have this lined up beforehand, not on the fly.