Private Credit for Small Business Acquisitions
Private Credit for Small Business Acquisitions: Flexible Financing Options
Sarah had her eye on a beloved neighborhood bakery—flaky croissants, loyal clientele, the works. Traditional bank term sheets came back with endless hoops and a 90-day wait. Frustration crept in. That’s when she discovered private credit lenders willing to underwrite her acquisition in under two weeks. Sound too good to be true? Private credit for small business acquisitions is shaking up how buyers fund deals.
What Is Private Credit?
Private credit refers to loans provided by non-bank entities—direct lenders, business development companies and specialty funds. They craft debt structures outside syndicated bank markets, tailoring interest rates, covenants and maturities to fit each acquisition. No cookie-cutter approach here.
Why Buyers Turn to Private Credit
- Speed: Term sheets in days, not months.
- Flexible Structures: Senior debt, unitranche or mezzanine slices in one package.
- Smaller Ticket Sizes: Loans from $1 million to $25 million for Main Street deals.
- Customized Covenants: Adjusted to cash flow seasonality and growth plans.
Use Cases in Small Business Acquisitions
| Scenario | Private Credit Solution |
|---|---|
| Owner-Operator Transition | Unitranche loan with PIK interest to bridge cash flow gaps |
| Add-On Acquisition | Revolver plus term loan combo to finance both purchase and working capital |
| Management Buy-In | Senior debt with equity kicker for sponsor alignment |
| Distressed Turnaround | Mezzanine financing with performance-based covenants |
How Our Platform Works
We match you with private credit partners who get the grit and grind of smaller deals. You share your acquisition package—financials, business plan, purchase agreement—then:
- Underwriting: Our analysts vet cash flow, collateral and sponsor track record.
- Matching: Algorithms pair you with lenders who appetite your sector and size.
- Term Sheet: Receive multiple proposals with clear pricing and covenant options.
- Documentation: One-stop shop for loan docs, security agreements and closing agendas.
- Funding: Draw funds and close your acquisition, often within 10 business days.
Questions to Ask Your Private Lender
- What is the total all-in cost, including fees and prepayment terms?
- Which covenants could trigger a default and how flexible are they?
- Do you require personal guarantees or equity warrants?
- How do you value goodwill or intangible assets in the business?
Private credit can feel like uncharted territory, especially if you’re used to the bank’s playbook. Yet it’s a world where creativity meets capital, and where sponsors like Sarah get to keep chasing their dreams without the drag of bureaucracy.
Ready to explore private credit for your small business acquisition? Submit your deal and our team will line up lenders who move fast and think outside the bank box.
Submit Your DealGet 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.
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.
Submit a RequestProject 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.
Submit a RequestAcquisitions
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.
Submit a RequestFor 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 RequestOnce 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.
