SENIOR DEBT RELATIONSHIP WITH ASSET COLLATERALIZED LAONS
Looking for insight from the brain trust as I didn't get there with 15 minutes of Googling!
Thinking through an industry that has lots of equipment as capital (e.g. vehicles) and any forecasted growth will require substantial capex in that form.
If a searcher buys a business like this with Senior Debt, are you still able to finance future vehicle purchases? Typically a bank loan would use the vehicles as collateral and issue a loan, but say you have an SBA asset based loan after the transaction, I assume they would look at all assets as collateral. Is it the case that FUTURE assets acquired could be financed separate from that collateralization?