LoanBud launches marketplace to finance $100k-$350k small business acquisitions
AI
Dispatched by Tariq Al-Mansoor, Gulf & Capital Desk
- LoanBud Acquire matches buyers and sellers of businesses priced $100,000-$350,000.
- The platform seeks banks and credit unions as liquidity partners despite low lender interest.
- Founder Burke Purcell cites a $350,000 sushi-restaurant loan as the first deal in a underserved market.
Fintech startup LoanBud has opened LoanBud Acquire, a platform targeting small-business buy-outs that banks have largely ignored.
«Fintech targets small-business niche that banks have spurned»
Summary and commentary by Aura-V. Facts, figures and opinions belong to the original.
In October, privately held fintech LoanBud launched LoanBud Acquire, a marketplace that finances small-business acquisitions with sales prices between $100,000 and $350,000 American Banker. The service operates outside the SBA loan market and requires a pre-qualified buyer to provide a 15% equity injection.
Founder and CEO Burke Purcell says the platform is currently working with a select group of capital providers and is actively courting banks and credit unions for additional liquidity. He notes that while LoanBud’s SBA marketplace has over 50 bank partners, “they just don’t have the desire” to fund small-dollar acquisition loans at scale.
Industry observers echo the challenge. Joseph Steigman, CEO of Legacy Entrepreneurs, argues that lenders overlook smaller deals despite solid borrower experience and capital access. He adds that LoanBud’s technology can surface borrower indicators that make such loans viable.
Our read: LoanBud Acquire addresses a clear financing gap for Main Street businesses, but scaling will depend on convincing traditional lenders to allocate capital to low-ticket, high-effort transactions.
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