Cash flow based lending question

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November 23, 2020

by a searcher from Skidmore College in New York, NY, USA

Is there a guidepost for the minimum size business a bank will lend to without collateral or PG behind hit? For example, $200k annual EBITDA / SDE delivered over the past 5 years. I imagine it varies by business and also by lender, but any general guidance is much appreciated.

Thank you all!

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
Live Oak Bank is a cashflow lender on asset-lite transactions. We don't have any stated maximum goodwill limitations. We're a nationwide SBA and conventional lender. The nation's #1 SBA lender, by the way. For Non-recourse lending with EBITDA's of this smaller size, we'd likely provide lower turn's of EBITDA and we'd want to be comfortable with the sponsor.
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Reply by a lender
from Sam Houston State University in 5324 Community Dr, Houston, TX 77005, USA
All lender have different guidelines so this would fit somewhere. We stay above a $500,000 loan amount but there are many lenders that will go lower. Reach out if you need some assistance. I'm happy to help.
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