[RaveDave]

Does anyone know which companies provide loans to help buy a restaurant? What is a good fit here?

[Yankeeman07]

Does anyone know which companies provide loans to help buy a restaurant? What is a good fit here?

You do not provide many details - SBA 7 (a) could be a solution.

A business owner is not going to utilize MCA $$ to purchase a business.

[Olderguy]

Specific SBA lenders who do business acquisition...

Here are some parameters for business acquisition from one of my lenders:

Assuming the deal debt services, can finance most CRE purchases at 100% LTV on 7a up to 5MM. They lend based on Prime, but can get aggressive on clean or competitive deals. Have found that a lot of customers will forego a lower rate in order to save on the injection. Rates are case by case, typically 1.0 - 1.5 over Prime, but can get as low as Prime minus 1.50 for the right deal/situation. Have risk-based pricing.

Can potentially lend 100% on business acquisitions if the buyer is in the same industry, i.e. one company buying a competitor. Otherwise, 90-95% is typical (subject to cash flow), and can get creative on seller notes, gift funds, and outside investors. Rates are generally 1.50 - 2.00 over Prime, lower on exception.

Max loan amount is 9MM on business acquisitions, including 5MM SBA and 4MM conventional. Have the ability to lend fully unsecured where necessary.

Closings are 45-60 days, and this lender's process is extremely efficient. Loans are typically approved within two weeks.

Ground up construction is fine, including TI's for lessees.

Loan amount minimum is 500k for acquisitions/refinance/construction...but he'll look at anything....and maybe do waiver.

SECONDLY - I structure property purchases with a lender program that allows 65% - 70% Loan to Value and can have a seller carryback of 20% to 25% to give you 90% Combined Loan to Value financing. And one program I have access too will also allow a seller to make a 6% contribution to closing costs. So all a buyer needs is 10% down payment. It's possible to do a real estate purchase and a business purchase separately.

Reach out -

[MattNBC]

You do not provide many details - SBA 7 (a) could be a solution.

A business owner is not going to utilize MCA $$ to purchase a business.

That's not true at all.. I closed a $10 million MCA that was utilized to buy a meat facility that was closed down. There was another lender doing $15 million so combined $25 million. We are both being taken out by a senior lender with mortgage terms on the building.

I also have closed a $3 million MCA for acquisition purposes - This one was very tricky, majority owner who was 80% was Canadian, his brother was US Citizen at 20% ownership - No prior business history either. They were taking over an existing business.


MCA is definitely being utilized to close on acquisitions. Most have exit plans to take out the MCA within a couple of months.

[Bcooper]

That's not true at all.. I closed a $10 million MCA that was utilized to buy a meat facility that was closed down. There was another lender doing $15 million so combined $25 million. We are both being taken out by a senior lender with mortgage terms on the building.

I also have closed a $3 million MCA for acquisition purposes - This one was very tricky, majority owner who was 80% was Canadian, his brother was US Citizen at 20% ownership - No prior business history either. They were taking over an existing business.


MCA is definitely being utilized to close on acquisitions. Most have exit plans to take out the MCA within a couple of months.

Why would you ever use an MCA for this? You can close a bridge loan within a week, two if it's a complicated one. It would also be at a far lower rate, not shaming you for making a bag, but from a business perspective, it's quite literally the dumbest move you could make. Anything over a 1.10 factor rate is going to be far more than what it would have cost to do it with traditional products.

[MattNBC]

Why would you ever use an MCA for this? You can close a bridge loan within a week, two if it's a complicated one. It would also be at a far lower rate, not shaming you for making a bag, but from a business perspective, it's quite literally the dumbest move you could make. Anything over a 1.10 factor rate is going to be far more than what it would have cost to do it with traditional products.

Lets talk.. Maybe you have another product I can add to my toolbelt... A lot of the people are coming to us and using MCA for the speed... Many of these guys get 12 month 1.20 - 1.25 deals but the early payoffs start at 1.09 - 1.12 for when they get them paid off so they're right there with the 1.10 you mentioned above. I've got a lot of people who have senior lenders and equity in place and they need the last piece. We are often on the phone with the senior lender for a subordination agreement of some sort or just some sort general understanding that we are funding besides them.

A lot of ABL guys use us for over advance situations, we don't need personal guarantee always and we can do a lot of different part of the agreement in the form of a spring - Like a springing UCC if they miss a payment, we've even considered doing springing security interest before too.

But I'm using the tools I have in my toolbelt, maybe you have a new tool for me.

[Bcooper]

Lets talk.. Maybe you have another product I can add to my toolbelt... A lot of the people are coming to us and using MCA for the speed... Many of these guys get 12 month 1.20 - 1.25 deals but the early payoffs start at 1.09 - 1.12 for when they get them paid off so they're right there with the 1.10 you mentioned above. I've got a lot of people who have senior lenders and equity in place and they need the last piece. We are often on the phone with the senior lender for a subordination agreement of some sort or just some sort general understanding that we are funding besides them.

A lot of ABL guys use us for over advance situations, we don't need personal guarantee always and we can do a lot of different part of the agreement in the form of a spring - Like a springing UCC if they miss a payment, we've even considered doing springing security interest before too.

But I'm using the tools I have in my toolbelt, maybe you have a new tool for me.

Feel free to give me a call, I've spent the last year and a half building out a custom trained AI, it has a few different components but it can identify a fund for just about any transaction you could throw at us with the exceptions of MCA's, Equipment finance, and Non profits. We can get just about anything else done quickly. Outside of what i just listed we have no max size, industry, or location restrictions.