Does anyone have any experience with getting creative with financing?

searcher profile

September 19, 2024

by a searcher in Lathrup Village, MI 48076, USA

I have recently delved into the world of purchasing a business and am exploring different finance options. It is exciting to see that there is no set structure that needs to be followed as far as structuring the deal goes.
In an ideal world some seller financing would be a great option although not always available. The next best option to my understanding is to acquire a SBA 7a loan which is directed towards individuals looking to purchase small businesses. It does come with its own limitations ($5 mil max loan amount and business has to be cash flowing) although requires a smaller down payment (10%) with the option to to use 5% towards the down payment in the form of a sellers note requiring less out of pocket.
I am ideally looking to purchase something that is a value add and may not be cash flowing which could pose an obstacle. It is possible to structure the deal as more of a 'new project' and to use projected income based on a solid business plan. If the seller is also looking to provide a seller note for a certain amount of the purchase price this could also be beneficial in structuring the deal.
Has anyone had any experience within this realm with a successful way they structured the deal or has any ideas on how one could go about doing this?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We would be happy to have a conversation. We are a Commercial Loan Broker with over 500 funding partners including SBA, conventional and non-bank lenders. You can reach me here or directly at redacted if you want to walk though the various financing options.
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