TAKING A LIMITED PERSONAL GUARANTEE FOR SUBSTANTIALLY BETTER LOAN TERMS
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?