Planning an Expansion or Acquisition?
Fill out our 5-Minute Application and let’s help get your business to the next level.
Your business is humming along nicely and you see opportunity for your company to spread its wings.
TABASFUNDING helps businesses in Pennsylvania, New Jersey, Delaware, Delaware Valley, Lehigh Valley, Harrisburg, Allentown, Bethlehem, Easton, and the Main Line expand and grow.
Venture Capital to Expand Your Business or Acquire a Business?
A business that is expanding or acquiring another business needs funding. There will be an amount required to pay for the new facilities or equipment, or perhaps the purchase price of an acquisition.
A business newly acquired or one that is growing needs working capital. If a business is starting a new location, or new area of business, while it is getting off the ground and before sales begin to grow, the outgoing payments are heavier than what is coming in.
In the case of an acquisition, there will be a period of getting things organized, as the buyer gets to learn the ins and outs of the business acquired. Part of the need may be to keep funding the business running while it is reorganizing to take advantage of economies of scale.
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.
Fill out our 5-minute application and let’s begin the conversation.
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.