Experiences with process of raising debt?

searcher profile

May 09, 2022

by a searcher from Columbia University - Columbia Business School in Santa Ana, CA, USA

Hi everyone,

For those experienced in raising debt for deals, how did you go about it?
- Cold outreach to banks you googled?

- Using searchfunder's directory for lenders?

What initial information is most useful to provide so I can make the most of our conversations?

Context:

I have a deal I'm looking at and would like to refinance a substantial portion of the debt on the balance sheet and provide operating capital for growth.
Approx value $4M, Projected $5M 2022 rev w/ .5M; projected $6M+ 2023 rev w/ 1.5M+ EBITDA. (Business has increasing returns to scale and recurring revenues are growing).

Open to SBA 7(a), 504, mezz, factoring, commercial debt and/or other debt tools.

If this moves forward, I'll update the post with my own experience.

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commentor profile
Reply by a searcher
in Limerick, Ireland
Position of seeker of debt should be, "I need a product, which you sell", "I am here to solve a problem you and you bank could have which is to invest the banks capital and get a return" then reference the dscr, and discuss a potential long term relationship. Kiss frogs! its a numbers game, every bank/ lender is different.
commentor profile
Reply by a searcher
from Pennsylvania State University in New York, NY, USA
I thought this was helpful for SBA route: https://www.getrevue.co/profile/BigDealSmallBusiness/issues/navigating-the-sba-7-a-maze###-###-####
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