this post was submitted on 16 Nov 2023
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I would like to buy a large business that cash flows but I need a lot of money to buy it, where do I start? I could leverage my house?

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[–] yourbizbroker@alien.top 1 points 11 months ago (13 children)

Business broker here.

A $6-$7M business can be purchased using a maximum of $5M from an SBA loan and then either seller financing or a conventional bank loan.

Plan on bringing around $1M to the table of your own money or from private investors. You may be asked to put down 10% of the purchase or supply your own working capital once you take over.

Your story matters. The bank and the seller need to feel confident your team has the experience to run a business of this size and industry.

[–] AdventureAardvark@alien.top 1 points 11 months ago (2 children)

Can be difficult to get seller financing with an SBA loan

[–] yourbizbroker@alien.top 1 points 11 months ago (1 children)

It’s actually quite popular to pair SBA and SF.

[–] AdventureAardvark@alien.top 1 points 11 months ago

Thanks. I read in Walker Deibel’s book Buy Then Build that SBA is hesitant or has restrictions with SF. Encouraged to hear it is popular, as that was my plan before reading the book.

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