SBA express loan

by a searcher from University of Colorado at Boulder

1 year ago

We have SBA 7a outstanding and thinking about SBA express LOC for A/R financing. Does anyone on here have experience stacking these products? Anything to be aware of of pretty straightforward? Thanks!

2 likes
75 views
3 comments

searcher from University of Colorado at Boulder

Perfect thank you!

1 year ago | like reply | 0 likes

lender from Eastern Illinois University

I agree with Karl. You will first need to go to your existing SBA lender to request the line of credit. So long as your cash flow supports it, hopefully they will not have an issue giving you the line. If for some reason they are not interested in giving you the line you will need to get two things from them. First, you will need to get a denial letter from them. That will open up the opportunity for you to get the line done elsewhere. Secondly, you will need the to agree to release the accounts receivables so another lender can provide financing on them. It is almost assured they have a general lien on all business assets that includes your account receivables. Without them releasing them, you will not be able to get additional outside financing from another SBA lender or any other lender for that matter. Even if another SBA lender is not interested in providing you with a line of credit, there are other options available out there from other asset based lenders, conventional bank lines, and factoring. But again, you will need the Bank to release the accounts receivable for another lender to be able to finance you.

If you would ever like to talk in more detail, please do not hesitate to reach out to me here or directly at --@----.com Good luck and. I hope your Bank approves you for the additional working capital.

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.