Non-SBA Lending Recommendations

searcher profile

August 03, 2020

by a searcher from University of California, Santa Barbara in Seattle, WA, USA

Hi Everyone!

After 7 months and 3 LOIs slipping through the cracks (Coronavirus!), my fund has successfully secured an exclusive LOI on a very profitable business. The deal falls under construction and my lender of choice doesn't specialize in this category so it looks like I may need to seek financing elsewhere. I have a very flexible investment team and a seller who has already committed to a 23.5% sellers note. We are only looking for non-SBA loans at the present time, so if anyone has any recommendations I would love to chat.

Thanks in advance
Douglas

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commentor profile
Reply by a searcher
from Stevens Institute of Technology in New York Metropolitan Area, USA
Doug - two things to be careful with. If the company does bonded work (with commercial surety companies or independent surety) - the lender you approach has to understand bonding company gets first lien over the bank. Secondly, the bonding company will not allow too much debt (or leverage) on the company. You may need to find equity financing as opposed to debt. Try BMO Bank as a starting point.
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Reply by a lender
from Columbia University in Miami, FL, USA
Hi Douglas - my fund (Stonehenge Capital) provides debt for buyouts. Feel free to send me a teaser or some details: redacted
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