Working Capital or Line of Credit Post Close - Advice

January 23, 2025

by a searcher from Brigham Young University in Provo, UT, USA

I’m getting close to closing on a business acquisition, and while I have just enough capital to finalize the deal, I’ll need a line of credit or working capital loan to fuel growth post-close.

Does anyone have advice on how to secure a working capital loan for a business you’re about to acquire? Ideally, I’d like to have everything lined up so I can close on the loan immediately after the acquisition. I’m looking for a $300K loan.

Any tips, strategies, or lender recommendations would be greatly appreciated. Thanks in advance for your insights!

Reply by a lender
from University of Southern California in Los Angeles, CA, USA

I would definitely get a lender involved now vs after the change of ownership. Once you complete the acquisition you will be considered a startup without 2 year min operational history that most banks need to fund a SBA small loan. Let’s chat so we can structure this correctly. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!

Reply by a lender
in Falmouth, MA, USA

^redacted‌ - As others have mentioned, don’t close the deal without sorting out your working capital. Otherwise, you could end up relying on costly MCAs—unless the deal isn’t heavily leveraged and you have room to borrow more at a reasonable rate. Did the lender look into your working capital needs? If not, they’re not setting you up for success. Feel free to reach out to me at redacted if you’d like a more detailed deal analysis!

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