How much business can you really afford to buy?

lender profile

June 24, 2025

by a lender from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) in United States

In SBA acquisitions, your buying power is determined less by your ambition… and more by your liquidity. Why it matters: – Pre-close liquidity = down payment + closing costs – Post-close liquidity = contingency buffer (required by lenders) Here’s a simple rule of thumb: – $250K in cash ≈ $2.0M–$2.5M total deal size …if structured correctly. Misjudge this and you’ll either (1) fall short with lenders or (2) overextend post-close. At PCA, we help buyers reverse-engineer their budget, pressure-test deal sizes, and structure in seller notes or outside capital where needed. Want to run the math on your liquidity and see what you can really afford? Happy to help: https://calendly.com/alan-pioneercap.
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