Cash flow based lending question

by a searcher from Skidmore College

4 years ago

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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5 comments

professional from Philadelphia University

Have had clients that have used Live Oak Bank and they come very recommended.

4 years ago | like reply | 0 likes

lender from California State University, Sacramento - College of Business Administration

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.

4 years ago | like reply | 1 like

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