Partnership & Shareholder Buy-in Loans
Looking to expand you business with a new partner? American Bank can provide buy-in financing for your practice.
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Professional practices grow and expand their capital base by admitting associates into partner/shareholder positions.
Loans to facilitate purchases by the new partners of partnership interests or shares are typically made directly to the new partner/shareholder.
Key points to consider:
- Loans are typically secured by the partnership interest or shares being acquired.
- Loan amounts may be up to 100% of the purchase price, and may require a buyback agreement from the practice.
- Loan principal repayments are generally consistent with expected partnership/shareholder distributions each year.
- Loan maturities generally do not exceed 3-5 years.
Some firms prefer to fund the full amount of the shareholder loans with one loan from American Bank. The individual allocations of this loan to the new partners/shareholders, which reflect new ownership amounts, are then maintained and serviced by the partnership, which in turn services the loan to the bank.
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Growing practices typically need a mechanism to expand ownership to new partners. We have the lending expertise to provide the financing these practices need to grow and prosper.
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Lending solutions that can help you manage your company's stability, position, and long-term growth.
American Bank can help small businesses get financial assistance and access to SBA loan programs.
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Our bankers can create flexible loan structures to fit your company's specific needs.
