Partner Buy-Out Loan Overview
Partner buy-out loans are term loans to finance the equity buy-out of one or more partners exiting the business.
Loan Purpose
- Stock Purchase Price
- Equipment
- Furniture and Fixtures
- Tenant Leasehold Improvements
- General Purpose Working Capital
Loan Amounts
- $25,000 – $5,000,000
Rates
- 7.30% – 12.50% (Variable or Fixed)
Collateral
- Cash
- Marketable Securities
- Equipment
- Furniture and Fixtures
- Tenant Leasehold Improvements
- UCC Filing
Repayment Terms
- Monthly Principal & Interest Through Maturity
- 2 – 10 Year Amortization Periods
- 0% Minimum Down Payment (In Most Cases)
The most common method of funding business acquisition loans is through the Small Business Administration (SBA) 7(a) program.