I'm looking for a lender that will do a 90/10 on a business acquisition with no real estate. The property is a popular sports bar/tavern that has about $1.2M in sales annually. Purchase price is $685K, I have $80K for my own cash injection and am seeking about $645K total to provide working capital as well. I realize restaurants are risky by nature, but this is truly a bar, not a restaurant, and has a 6 year track record of consistently growing sales.

Hello,

I believe I can help you. I will need to see the business plan as well as gather more information.


Thanks,
Remey

Your best bet is to have the seller finance the transaction. Without collateral, the loan will be virtually impossible to get unless you are financially very strong. Lenders look at three sources of repayment and two out of three need to be strong:

1. Cash Flow - primary source of repayment
2. Collateral - backup source of repayment. Unfortunately, it means liquidating the collateral which is costly and time consuming. Still, it is an option lenders like to have.
3. Borrower's Financial Strength - last source of repayment. If the borrower is financially strong, lenders might overlook weakness in one of the two areas above.

Im not quite sure I understand, you say you're seeking a 90/10 loan but then you mention you want a 645k loan which is more like a 95/5 correct? Either way you will need 10% down into this deal. Some lenders will consider cross-collateral of other real estate for the 10%down. It also can potentially be structured as a 75% loan, 20% seller cary, and 5% down payment.

I do alot of bar/restaurant financing. I only need application, credit report and submission form to qualify your loan. I can also close in an LLC if need be.

I have a lender that that might be able to help you. <snip> They have unique program that lend to people with difficult situtions.