Terms for Non SBA loans

by a searcher

1 year ago

I have a HVAC company I am negotiating with and I am expecting that we will agree to terms this week, we are working out some finer details. I am wondering what terms and interest rates everyone is seeing in the market for Non SBA loans?

The company achieving $1M in EBITDA and we settled on a 3.5 x multiple. I have a 20% deposit and would like a 7 year amortization schedule vs 5 years, if possible with no personal guarantee. Is this possible? 

Thank you.

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2 comments

searcher from Columbia University - Columbia Business School

Honestly, I don't know any entrepreneurs who haven't taken on Personally Guaranteed debt, unless they have Venture financing. The entrepreneurs I know that have a net worth > 25M all eclipsed 10M in PG'ed finance at one point or another. I'm not advocating it, but it's a good sign of conviction to investors and bankers.

1 year ago | like reply | 1 like

lender from Concordia College, Moorhead

It sounds like a nice performing company and you've got adequate capital into the transaction, however with traditional bank financing it will be difficult to finance all the blue sky without an SBA guaranty.

1 year ago | like reply | 0 likes

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