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Forum nameFinancial Feast
Topic subjectPrivate money investor
Topic URL
1032, Private money investor
Posted by oweaponx, Sun May-12-13 11:31 PM
Just wondering if there are private money lenders that lend based on the value of a business for sale. For example (using something already sold for the example):

Asking Price: $150k
Revenue (before expenses): $525k/yr
Net (or cash flow after expenses): $140k/yr.

Under this example, the seller wants $150k, and cash flow's $140k/yr, and I'm wondering if private investors/money lenders would lend based solely off the existing assets of a business, for a buyer to buy the existing business.