Borrowing Money for Expansion or Acquisition
Capital usually comes from several possible sources, not all borrowed. For an expansion or acquisition with TABASFUNDING, borrowers will need at least 20% of their required funds from their own resources, family or friends, in cash. The balance might come from a combination of bank, TABASFUNDING, or other sources. In the case of an acquisition, sellers often provide some take-back financing.
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Alternative to Bank Loans
Unlike most banks, TABASFUNDING has the ability to “read between the lines.” For example, we provided financing for the head bartender at a pub to purchase the place. While the business financials showed poor performance, we felt that the bartender was in the best position to evaluate whether the pub could make its payments. We backed the purchaser, and were repaid. This is what they don’t teach in business school and many lenders don’t have the ability to approve. (See “Sample Funding” page on this website.)
The loans that we provide for expansion or acquisition are term loans, and are repaid over terms between 3 and 7 years.
For the working capital portion of acquisition or expansion financing, this may be addressed by allowing an “interest-only” period on the financing. That means that borrowers will pay interest only for a year, or possibly two. Sometimes there is a separate credit line. We have often provided funding to supplement bank funds, where banks are more bound by formulas and we are able often provide amounts in excess of the bank. Please see the “frequently asked questions” section for general terms.