Doug Lebda

Alternative lending is your new best friend. While everyone's crying about SBA restrictions, FinTech lenders are hungry for business. Revenue-based financing, merchant cash advances, peer-to-peer platforms - all viable options. ACTION: Get pre-approved with 3 alternative lenders before you need them. Having backup funding sources ready turns crisis into opportunity.

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Agree wholeheartedly with David Eads, CEO of our portfolio company Vine Financial, Inc. who is quoted in BankNews: "Community banks are a vital part of the commercial lending landscape and their relationships with businesses are critical to their local economies. Right now, these banks have a lot of manual processes that expose them to risk and ultimately hold them back from the relationship building that is so vital to their success. I expect in the new year we’ll continue to see more banks looking to modernize their commercial lending operations so they can save time, reduce risk amid economic uncertainty, and deliver the level of service that’s expected of a community bank."

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I started my last acquisition the same way I always do. Met with the banker who'd fund the SBA loan. He said something that changed how I think about every deal: "My first job is to convince you we're the right bank. My second job is to figure out if the loan is right for us." Most buyers get this completely backwards. They walk in aloof, reserved, skeptical. They act like a conservative investor who needs to be convinced. But the seller isn't a startup founder begging for capital. They've run this business for years. It's paid for their house, their kids' education, their entire life. And you just walked in treating them like they're trying to unload a lemon. The seller is thinking: "Is this buyer serious? Are they competent? Will they fire my people?" They're protecting their baby. Their life's work. You're not the only one evaluating fit here. The best buyers understand something different. They know the fair price will reveal itself later. Their first job isn't to evaluate the business. It's to convince the seller they're the right buyer. You need to prove 3 things in the first meeting: 1. You're able to close if it's right 2. You're competent and passionate about their business 3. You can solve problems together Get these right in 20 minutes, and you've already won. When it's your turn to introduce yourself, treat it like a job interview for CEO of their company. Thank them for meeting. Highlight your relevant background and accomplishments. Then explain your structured process and commitment to closing. "I'm actively searching with a structured process. I've met with banks and arranged capital. I'm committed to finding the right business in this timeframe." Now compliment their business. Pick 2-3 specific characteristics that drew your interest. This simple introduction just accomplished something powerful. You proved you're serious, passionate, and respectful of their work. All before they had to ask. While other buyers play hard to get, you just became their favorite candidate. Here's the advanced move: negotiate everything except price before you make a formal offer. Figure out what matters to the seller beyond money. Future employment of key people? Timing of close? Avoiding a seller's note? Executing their growth vision? Everyone has qualitative goals that matter as much as price. When I sold my own company, I had 2 non-negotiables: The new CEO needed the skillset to take us to the next level. Every employee had to be retained at fair market pay. Those 2 things mattered more than price. That sale taught me the best deals happen when both sides solve a problem together, not battle over a pie. Approach sellers as a partner, not an adversary. Every time I've done this, it's worked. If you want to learn more, check out https://buythenbuild.com/.

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Small businesses can’t always wait weeks for funding. 📊 Approval Time: 14 days vs. 3 days 📊 Flexibility: 3/10 vs. 8/10 That’s the gap between traditional banking and alternative financing. Banks are essential for checking, savings, treasury management, and SBA loans. But entrepreneurs in construction, retail, restaurants, auto repair, and other industries often face challenges when speed and flexibility matter most. That’s where alternative financing comes in: ☑️ Faster approvals (days, not weeks) ☑️ Flexible repayment like revenue-based lending ☑️ Transparent, lower fees ☑️ Modern, mobile-first tools that integrate with accounting and POS systems These solutions aren’t here to replace banks — they complement them. Together, they give business owners a complete financial toolkit that fits real cash flow cycles and growth opportunities. At Ask The Banker™, we help small business owners compare options, strengthen cash flow, and access capital tailored to their industry. 👉🏾 Explore your options: https://lnkd.in/ei2GmYip #SmallBusiness #BusinessFunding #AlternativeFinance #AskTheBanker

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Wow, woke up to the Brex-it of the Fintech world. Some thoughts on the exit + implications for the Fintech ecosystem in Singapore. 1/ The $5.15B acquisition is a large number, but what is less reported is that this is much lower than their latest raise in 2021 at $12.3B. If we remember, 2021 was peak Fintech madness, and we saw that in Singapore as well (more on that later). It means that for the last 5 years, not only has that number not grown, it has more than halved. Will be interesting to note how all of the funds report this after marketing it to market for so long. 2/ The reckoning of Fintech valuations will be even more real over the next few years, and will be felt even more in Singapore than in the US. In the US, there are just so many more options for exits, and because of the depth of the ecosystem, you have a lot more shots at making it happen. In Singapore, you miss a boat, that's it. A competitor out-executed or you missed a wave. Cannot be saved by acquisitions or any other form of exit. 3/ I remember when Brex launched and it was the best thing since sliced bread. Ramp came way later and I remember thinking it is a "me too" or "has been". Wow, just look at how the mighty was "fallen". Its not a bad fall, but truly it is all about execution, and the tides can move very fast. Your incumbency does not mean anything. Similar parallels to Aspire and Spenmo in Singapore, and amazing to see how fast Spenmo flamed out despite raising so much. 4/ One of the biggest difference in the US and Singapore, is that banks in the US actively acquire. That really lifts the fintech ecosystem in a way that nothing else can. Singapore and Asia is home to world class banks. DBS Bank (market cap: ~US$125B), Singapore's largest bank, has a valuation that is only 20% smaller than Capital One (~US$150B), the acquirer of Brex. Will DBS ever make an acquisition like that? It's not just about DBS. UOB OCBC Maybank CIMB all have large and strong market caps that are not too far off. Let that sink in. As an active participant in the markets here, I really hope that we move towards that direction. 5/ In spite of what I shared, what Brex has built is amazing. 2017 to 2026, US$5.15B in valuation created from nothing. Industry defining category building. Inspired many to do the same across the world.

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BREAKING: The SBA just doubled the max borrowing limit from $5 to $10 million, effective July 4th. How you can take advantage of it to buy a boring cash-flowing business in 2026: An SBA loan lets you borrow money to buy a business. Because the government backs it, banks offer terms you can't get anywhere else: Low down payment and long repayment window. Up until now, the maximum you could borrow was $5 million. That just changed two weeks ago. Starting July 4th, borrowers can combine: • SBA 7(a): up to $5M (acquisitions, working capital, debt refinancing) • SBA 504: up to $5M (real estate & equipment) Stack both and you get $10M in gov-backed financing for a single deal, which means you're targeting businesses doing $800k-$1.5M/year. How to position yourself to close one: Step #1: Get your financials in order Pull your last 2-3 years of personal tax returns an get your credit above 680. Lenders need to see your financial history before they underwrite. The earlier you pull it together, the faster you move when you find the right deal. Step #2: Find a business 1. Go to https://lnkd.in/eDtyDk_c • Create a free accont • Hit "Marketplace" • Filter by industry, revenue, & asking price Look for businesses doing $150k-$500k in SDE. That's where SBA financing is most powerful & competition from PE is lowest. Step #3: Get an independent valuation Lenders need proof the business is worth what you're borrowing for it. An independent valuation answers that and tells you whether you're overpaying. Hire a CPA and an M&A attorney. For big enough deals, companies like Due Dilio can help (https://lnkd.in/eYpPcE3P). Step #4: Submit the LOI This lays out the price and basic deal terms on paper. It's not the final contract, but it shows the seller you're serious and gives lenders the deal structure they need to start underwriting. Without it, you don't get the loan. Step #5: Get seller financing The SBA requires 10% down for full ownership. A seller note can cover half of that. So on a $1M deal, the seller can fund $50k, you bring $50k, and the loan covers $900k. You own a $1M cash-flowing business for $50k out of pocket. - PS: I'm looking for 5 people who want to buy a business in the next 3-12 months. I'll give you a dedicated acquisitions team that sources and screens deals for you the same way a PE partner would (both on & off market). Apply here: https://lnkd.in/eXF6n-yy

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