Business Acquisition Loan Guarantees

Business Acquisition Loan Guarantees

Sponsors need bankable credit support to close on time and on terms. We underwrite the target, the structure, and the sponsor, then issue a private repayment guarantee sized to the risk. Lenders get a defined backstop. You get certainty, speed, and cleaner leverage without overreaching on personal guarantees.

Snapshot: Partial repayment guarantees for U.S. business acquisitions in the $5M–$100M enterprise value range. Typical coverage 30%–75% of senior principal. Fees tied to expected loss and structure. Collateralized through SPV controls, all-asset liens, cash sweeps, and sponsor support agreements.

Who This Is For

Sponsors

  • Independent sponsors and small PE seeking senior debt comfort.
  • Search funds and consolidators with repeatable playbooks.
  • Operators backing MBOs or carve-outs with limited hard collateral.

Transaction Profiles

  • Enterprise value $5M–$100M.
  • EBITDA positive. Clear cash conversion.
  • Add-on roll-ups with proven integration plan.

What You Get

Item Detail
Guarantee Partial repayment guarantee on senior term debt. Coverage sized to risk and covenant pack.
Underwriting Target QoE review, cash flow durability, customer concentration, churn, working capital, capex, and downside cases.
Controls SPV holdco, all-asset lien, blocked accounts, cash sweep triggers, step-in rights, consent on material changes.
Speed Indicative terms in 3–7 business days after data room. Full commit on completion of diligence and legals.

How It Works

  1. Eligibility screen. Send teaser, LTM and YTD financials, quality of earnings if available, CIM or deck, buyer profile.
  2. Indicative terms. Coverage range, fee range, key covenants, data requests.
  3. Diligence. Deep dive on revenue quality, margins, WC seasonality, legal, tax, ESG and any regulatory items.
  4. Structuring. Intercreditor, guarantees, lien package, reporting cadence, cure rights, waterfall.
  5. Commitment. Execution of guarantee facility with conditions precedent and monitoring plan.
  6. Ongoing monitoring. Quarterly packs, KPI triggers, covenant testing, board observer where agreed.

Structures We Support

First-Loss Layer

We cover the initial loss slice to a set cap. Maximizes comfort for senior lenders.

Pari Passu Share

Shared loss on a defined percentage of principal. Balanced risk split with the bank.

Performance Triggers

Coverage steps down on outperformance and steps up on stress with stronger controls.

Pricing and Fees

Component Range / Basis Notes
Annual Guarantee Fee 2.0%–5.0% on covered principal Linked to expected loss and covenant strength.
Underwriting Fee $32,500 per million US$ Covers diligence and structuring. Third-party costs pass-through.
Cure / Claim Fees Case by case Applied if triggers and cure mechanics are engaged.

Eligibility and Data Room Checklist

  • 3 years financials, YTD, and monthly KPIs. QoE if available.
  • Customer concentration, churn, pricing, and backlog detail.
  • Working capital cycles, seasonality, and capital expenditure plan.
  • Org chart, key management bios, compensation, and retention plans.
  • Purchase agreement status, sources and uses, pro forma structure.
  • Debt model with downside cases and covenant headroom.
  • Legal, tax, and compliance flags with mitigation plan.

Closing Timeline

Phase Day Output
Eligibility & NDA 1–2 Checklist issued. Data room opened.
Indicative Terms 3–7 Coverage and fee range, key covenants.
Full Diligence 8–25 Final structure. Intercreditor draft. CP list.
Commitment & Close 26–35 Guarantee executed. Funding timetable set.

FAQs

Do you replace personal guarantees?
Not fully. Our guarantee can reduce or narrow personal guarantees. Final position depends on lender policy and structure.
What coverage can I expect?
Typical 30%–75% of senior principal. We size to risk, covenants, and recovery quality.
Will banks accept this?
We structure with lender committees in mind. Intercreditor and collateral controls are designed to be bank-grade. We engage early with the lead lender.
Minimum size and sectors?
Minimum covered principal $1M. Most cash-generative sectors considered. We avoid targets with binary regulatory or legal risk.

Request A Loan Guarantee

Share EV, EBITDA, sector, sources and uses, and target close date. We will respond with eligibility and terms.

Request Terms

Disclaimer: Financely acts as arranger and advisor through regulated partners. We do not hold client funds. All guarantees are subject to underwriting, KYC, AML, sanctions screening, legal documentation, security perfection, and approvals by lending counterparties and insurers. Professional audience only.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.