Acquisitions Anonymous - #1 for business buying, selling and operating SBA Loan 101: How to finance a Seasonal eCommerce Business (Re-Release)
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Aug 30, 2024 Heather, an expert in structuring SBA loans for eCommerce, shares valuable insights on financing seasonal businesses. She delves into the unique challenges of managing inventory and working capital, offering practical strategies for securing SBA loans. The conversation highlights crucial financial metrics like margins and cash flow. They also discuss the importance of maintaining a line of credit and preparing for lender expectations, especially in today's economic climate. Heather's expertise illuminates common pitfalls and how to effectively navigate funding for seasonal ventures.
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EBITDA 'No Man's Land'
- Businesses with EBITDA between 2 and 3 million are hard to finance with SBA or conventional loans.
- This EBITDA range becomes a 'no man's land' where financing options are limited.
Close With SBA Loan Plus LOC
- Close deals with an SBA loan and an accompanying line of credit when dealing with seasonal businesses.
- Obtain the line of credit at closing as it is very difficult to get one afterward.
Client Regrets Refusing SBA LOC
- A client initially refused a small SBA line of credit to avoid fees during closing.
- Later, they needed and appreciated the line, highlighting its importance.