Interested in opinions on working capital options.

searcher profile

September 13, 2023

by a searcher from Northwestern University - Kellogg School of Management in Boston, MA, USA

I have an acquisition I’m looking at where the terms are basically a lease to own, but the firm comes with no working capital or accounts receivable. Typically, I’d prefer to purchase working capital with a business, but it’s not an option here.

I would eventually be merging this with another firm (already owned). However, it would put some stress on that business through the annual down season if working capital is not bolstered.

The target does ~$1M+ on the bottom line and the lease is very reasonable so cash flow is not an issue. I’d be looking for ~$500k – $750k. Also, this is a quick close, so SBA is not a desirable path.

How would you guys go about sourcing funds here?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
There are a number of asset based lending solutions you might be able to use. A lot of it will depend on what assets you control and can pledge to secure the funding. Most asset based lenders would want access to the A/R and inventory. If there are assets you will control, I am more than happy to have a discussion. You can reach me here or directly at redacted Good luck.
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