Any advice for when you are under LOI?

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October 10, 2025

by a searcher from Northwestern University - Kellogg School of Management in Chicago, IL, USA

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Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi Anon – nice to meet you. Once you are under LOI, make sure your liquidity and post-close liquidity are solid. Know exactly how much cash you will need to close and what will remain afterward, since lenders usually expect at least 5 to 10 percent of the total project cost left as post-close liquidity. Then confirm your structure early. Decide whether you will do a 10 percent cash down or a 5 percent cash down with a 5 percent seller note on full standby for the life of the loan, and ensure that setup meets SBA requirements. From there, move quickly on due diligence. Request three years of tax returns, the year-to-date P&L, balance sheet, payroll, and customer lists. Validate EBITDA and add-backs with your CPA instead of relying solely on the seller’s claims. Review the lease, licenses, and contracts early to avoid surprises later. From there, I'd say it would be to line up a lender while making sure your team is in place. This is why it's important to work with a broker who can help you structure the deal properly and match you to the right lender, quickly and efficiently. We have a lot experience financing various companies via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pays us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
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Reply by a professional
from Northwestern University in Chicago, IL, USA
Hi, I’d be happy to help out and walk you through it. Feel free to reach me out at redacted
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