Threading the needle

by a searcher from University of California, Berkeley

1 year ago

At what point does the personal guarantee drop off and you can switch to something that is purely backed by the company financials? Right now I'm self funded on the search effort and have some capital to put towards equity. I'm trying to right size a deal so that my spouse feels comfortable with the risk of a failed job but doesn't fear the risk of losing our home. I'm getting the sense that I need to go tiny (<750 EV) or skip all the way up to something that is closer to 8m+ EV. Is there any way to thread the needle without taking on such a large amount of risk?

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searcher from University of Texas at Austin

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1 year ago | like reply | 0 likes

searcher

Could someone give some input? Do most lenders always 'require' or ask for a personal guarantee and really it's negotiable, but you would need a bigger equity portion *can be a seller note on hold?) or a higher interest rate? And where did you get the 8 mill number? And why could you forego it on a small loan?

1 year ago | like reply | 0 likes

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