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communick@indiehackers.space

Where can I go to find financing to buy a 6-7M business? Located in Bay Area (alien.top)

submitted 11 months ago by theMEtheWORLDcantSEE@alien.top to c/entrepreneur@indiehackers.space

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

All source-of-money is 2 categories: Equity or Debt.

Debt: SBA loan would be most typical; one of our (marketing) clients: FremontFunding.com does SBA loans.

Equity: Give up some upside, but no payments directly, no debt-load; spreads risk but limits upside.

Syndication is common.

There's a ton of people lately talking about buying these businesses for zero money out of pocket, but that too carries a cost in one way or another - either increased debt load, or sharing equity.

For any of you crazy finance guys who wanna talk debentures, convertible debt etc I know there are hybrids, but loosely, it's all one or the other: equity or debt.

Debt is easy IF there's a history of cash flow AND some collateral (i.e. real estate, assets). No assets? no history? no cash flow? no loan, unless you have great credit, then it's smaller i.e. $150k "credit card stacking" etc. (thought that can work, and often have 0% teasers).