[jeffcapital]

Hello Everyone,

Have client looking for a term loan for 800K for partner buyout but doesn't want to attach personal assets as collateral.... SO SBA is not an Option

Any thoughts?

[Kevin Henry-Seacoast]

Hello Everyone,

Have client looking for a term loan for 800K for partner buyout but doesn't want to attach personal assets as collateral.... SO SBA is not an Option

Any thoughts?

Hi JeffCapital,

Is the client putting an cash in the deal. We have done transactions whereby the owner is putting in a small amount of capital and we finance the AR, Inventory, and M&E with an asset based line to provide some liquidity for the transaction and a facility going forward. It usually works well when there is some equity in the business, the owner is contributing equity, and there are enough assets to leverage while not disrupting the working capital needs of the business. Otherwise you could try a mezz fund that works with unsponsored deals.

[Jplummer]

Does the business have assets? Such as equipment that can be used as collateral?

[jeffcapital]

There are a B to C client base... They don't have AR and substantial equipment... Need term loan based on cash flow which is very cash flow positive......

[RichardGerard]

Morning Jeffcapital. When you say cash flow positive, are they more than $1M EBITDA positive on their P and L and last Corporate Return?

If yes then there are Mezz funds we work with that might have an interest (similar to what Kevin stated above). Industry type, client concentration and other factors will come into play.

Feel free to touch base if you would like assistance.

Richard 516 510 3855 Direct

rg@businesscapitalconsultants.com

Business Capital Consultants
3237 Route 112 Building 6 Suite 9
Medford, NY 11763