Funding a purchase of a small business (Not Real estate)

[Allende Hernandez]

Hello folks,

This is a non-RE questions so I hope you are ok with it. I am planing in purchasing a small business with cash to have some leverage on the price. My ideal situation would be to place it on a loan as soon as I can to recoup my cash back and gain buying power again. I haven't find a lender that is able to refinance a business that is not under a commercial loan so I am thinking maybe a private investor would do.

Similar to RE I was thinking on either an Equity Partner or better off a Private Lender that just lends me the money at a certain interest rate for let's say 5 years, with no stake on the company, of course using the business as a collateral.

Does this sound like a crazy idea or is it something people do?

Thanks in advance!

[Exavier Hamilton]

I recently had a client in this same position. We ended up using https://prestigebfs.com/

Most lenders a turn you a way if there's no real estate attached.  Some other ones we reached out too was upstart.com but you can't be self employed.