I have a great company under LOI and I intend to finance the entire purchase with a combination of my personal saving and a bank loan. I'm confident about the business but, it's my first acquisition.
I have received several term sheets but I'm torn between two:
1) 7yr amortization, 7% interest rate, no personal guarantee, no operating line or credit card
2) 8yr amortization with a sweep (capped, not too punitive), 4% interest rate with limited ($300k) personal guarantee, material operating line and credit card
What would you do?
Taking a limited personal guarantee for substantially better loan terms
by a searcher from McGill University
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.
330 views
20 comments
Sign in to see all replies.
Create an account.