No SBA, No Investors: The Liquidity Access Line

And then we, we went through an exercise of consolidating everything that we could into our primary bank, where we've got our, our, our financial manager overseeing the, the investments and the other things that we had. So that's all combined. So I've kind of maximized the collateral with a bank that we're with and worked with them to open up a liquidity line.

So as a, essentially line of credit that I was able to borrow against to get cash with no obligation to repay. And so it gains interest at about half the rate of what an SBA loan would. And I did make a habit of paying that interest every month, but if I needed to skip a couple months because the cash flow wasn't there, then I could do that without penalty.

Yeah.

So you choose not to do SBA because of the interest rates are so high and because of the. It's a, It's a traditional loan. So every month you're going to have to hit that, make that loan payment, you with your current bank, for your personal liquidity.

You.

They offer you a line of credit. What was it?

What was the instrument? Yeah, they call it a liquidity access line. Lal. It's a line of credit.

A line of credit. And you use that to buy the business. And we actually haven't touched up with the acquisition price is. What is that?

Yeah, so I, like I said, I estimated about 150,000 SDE. So I was looking for 2.5 to 4x purchase price, which would have been 375 to 600,000. Had the conversation with the owner.

He asked for 400,000. I said, that's on the lower end of my range. So there wasn't a lot of negotiation.

I mentioned there was another buyer that had not submitted anything official. But, you know, he's essentially saying, I'd like entertaining this other offer too, and, you know, very. Potentially just some sales tactics.