Anyone get creative closing a small funding gap?

July 17, 2025

by a searcher from Georgia Institute of Technology in Pittsburgh, PA, USA

Hey all, I’m under LOI for a small digital business and have most of the funding lined up — a mix of personal capital and seller financing. I’m about $50K short of what I need to close. I could cover it personally, but I’d prefer to keep a buffer for post-close needs. Has anyone here bridged a similar gap creatively? Would love to hear how you approached it — revenue share, micro notes, or anything that worked well for you. Appreciate the insight! — Zayne

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Reply by a searcher
from University of Chicago in Philadelphia, PA, USA

Is outside equity an option? If equity isn't an option, maybe you could get someone to lend a short-term loan to give you time to find lower cost capital. There is a group called C6 Capital that does short-term financings that can work for situations like this, where it's high interest rate debt with a 1-12 month repayment timeline, and the rate is lower the sooner you pay it off (early payment incentives). You could probably structure something like that and sound interest here. Here is C6 Capital's high-level terms you can reference: https://c6capllc.com/strategy If you pay back very quickly, I believe it ends up being a rate in the high teens, but for closer to a year it's in the 30s%. I think the factors here for pricing and interest would be: - How much of a gap the $50k is as a percentage of EV? Bigger the business, the less credit risk, and the smaller the hole to fill, the easier it will be to repay from cash flow - Do you have an SBA loan? I think having a PG would show more skin in the game than just personal equity - When are you trying to close by? Part of the premium here is urgency Another option could be a personal loan, if you would be open to taking that on. That would probably be one of your lower rate options.

Reply by an investor
from University of Colorado at Boulder in Austin, TX, USA

A few ideas for you that I've done in the past - some are wiser than others, so think good and hard and look at cashflow from the business to see if they work for you :) -Look for interest only short term loans (up to 1-2years), ideally from friends & family, paying them an attractive interest percentage per year. Refinance after 1-2 years. (e.g. 10% / year interest). -Ask if seller will accept credit card payment from you for that amount/portion of that amount. Then see what 0% APR credit card offers you can get for 12-18months. You can add 3% for the fees seller will need to pay. -If your cashflow from the business allows for it, use your personal funds but refinance from a business loan once you own the business. (This will likely be expensive debt - ~15-20%+ APR). -Look at personal debt - if you have good credit and/or some collateral. Check with your bank, or online lending platforms - you may be able to get a pretty good rate for a personal loan. (better than business loans). -You can bring in a passive investor for equity (e.g. sell of 10% to an investor or key employee if there is one). Keep us posted on how you bridge the gap!

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