Questions about E-com deal

by a searcher from University of Illinois at Urbana-Champaign

1 year ago

Hi Searchfund fam

Looking at an e-com product distribution company.   The cash flow as reported is decent and the product base seems stable but I haven't had any experience in the e-com space. Had a couple of questions 

Is it difficult to get a SBA loan for Ecom?
What are typical multiples on e-com product companies?

And a bit more on a general basis .. 

What rates/term are people getting on seller financing?

Thanks 
Krishnan

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6 comments

searcher from Salisbury University - Franklin P. Perdue School of Business

Hi Krishnan, it may be worth you looking into Boopos for funding. They only finance eCommerce & Subscription based companies. With their narrow focus they can fund deals quickly. I believe they require you show proof of funds of 15% of EV and the max they fund is $2m. Keep in mind that Boopos is also a revenue share lender. Instead of your typical loan payments they base your loan payments based on a % of revenue. Which can be both good and bad.
I also know a lot of searchers & experienced operators in the eCommerce space if you would like to partner with someone who has experience in this sector.
Let me know if I can help

1 year ago | like reply | 1 like

searcher from Columbia University - Columbia Business School

I would also have a chat with the people at https://www.ecommercelending.com

1 year ago | like reply | 0 likes

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