Bank line of credit when acquisition is mostly seller financed?
I'm working through deal structure on a manufacturing business where acquisition financing would be predominantly seller note rather than SBA.
Question is around bank involvement on the operating side. Even if bank isn't doing acquisition financing, I'd still want a bank line of credit for working capital and normal operating needs.
Specifically trying to understand:
-How do banks view providing operating LOC when they're not doing the acquisition financing?
-Are there banks that specifically work with seller-financed deals on the operating side?
-What terms should I expect on LOC in this kind of structure?
-Anything to watch out for in how the seller note and bank LOC interact (covenants, security position, etc)?
Appreciate guidance from operators who've dealt with similar structures.