Alt Lender / Private Lender Options (USA)?

searcher profile

January 06, 2025

by a searcher in Mississauga, ON, Canada

We service###-###-#### buyers at any point in time as a buy-side where it's primarily SBA deals (typical mandate is between $250k and $1.2M EBITDA). We generally go down the path of SBA, but for some the industry or structure sometimes throws things off.

We'd love to have alternative options, interest rate usually isn't an issue even much over SBA level given our DSCR is always quite high. For example here's a deal we had some issue with the SBA on due to industry:

Performance marketing agency
$6M EV (4.4x ebitda)
$1.34M ebitda 2024
56% SBA loan ($3.35M)
44% Seller note ($2.65M) on SBA standard (2 year standby, 10 year term)
2.3x DSCR

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commentor profile
Reply by a lender
from University of Southern California in Los Angeles, CA, USA
Advice would be work with more aggressive sba lenders. If it’s not supported by the SOP then you can work with merchant cash advance firms. Candidly if you can’t get a deal done with SBA it’s definitely not going to be an easy deal to do via conventional. MCA debt is expensive.
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