Merchant selling business to Buyer - wants an MCA to get the deal done.. Solutions?

**RogueCaliISO** · 03-09-2017, 01:41 PM

I have a client that is selling his business to someone, they are friends and the seller has no problem guaranteeing the loan along with the buyer.

What options does this client have in a situation like this? What lenders will entertain a $200k loan for the purpose of the buyer to acquire the business?

They are in California and do roughly 300k a month in gross.

Thanks.

**Kevin Henry-Seacoast** · 03-09-2017, 01:46 PM

Are receivables, inventory, and M&E staying with the Company? Do they currently have a LOC with bank? We have offered factoring and/or asset based lines to friendly buyers where they leverage the assets as part of the transaction. Is the buyer putting in any equity?

Kevin Henry Kevin.Henry@SeacoastBF.com

**J.Celifarco** · 03-09-2017, 01:47 PM

these deals are hard to do. I have seen them done, you have to find a bank willing then contracts will have both current owner and new owner sign so when the business transfers hands there is no time where the advance is not being covered. Also a copy of the executed purchase agreement would be needed.. Very hard to get done because of all the moving parts

**NickHubbard** · 03-09-2017, 02:14 PM

Check out America Business Capital's thread. They have a MCA Bridge Purchase Loan program.

http://dailyfunder.com/showthread.ph...URCHA-E-BRIDGE

**RogueCaliISO** · 03-09-2017, 03:17 PM

Yeah, I saw that before... do you know if anyone has had any luck with actually using that program and how the process worked?

**WestCoastFunding** · 03-09-2017, 03:27 PM

I think that program would require the buyer to put in $100,000 themselves and they would fund the other half.

**tgabcmca** · 03-09-2017, 04:51 PM

Rogue, give me a call. Contrary to WestCoastFunding, we need the buyer to have at least 25% cash participation. So in the 100K scenario, they need to have at least 25K to get the other 75K. There are other requirement as well. We can discuss it.

**WestCoastFunding** · 03-09-2017, 05:34 PM

Originally Posted by tgabcmca

Rogue, give me a call. Contrary to WestCoastFunding, we need the buyer to have at least 25% cash participation. So in the 100K scenario, they need to have at least 25K to get the other 75K. There are other requirement as well. We can discuss it.

this guy is looking for a $200,000 acquisition, may want to adjust the math.

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Merchant selling business to Buyer - wants an MCA to get the deal done.. Solutions?

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