23min chapter

Mundane Millionaires  cover image

Matthias Smith: Breaking Down Debt Service Ratios and Business Financing

Mundane Millionaires

CHAPTER

Maximum Financing for Buying a Business

This chapter explores the maximum amount of financing available for buying a business, including limits set by banks and the SBA loan program. It also discusses alternative methods to exceed the SBA loan limit, such as using equity raise and seller financing, or buying businesses in different industries. Additionally, the chapter touches upon debt service coverage ratios, valuations, and the implementation of a new structure.

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