How do I sell my
Private Lending
business?
Business Advisors of America helps private lending business owners document loan quality, demonstrate repeat borrower relationships, and position the business to high-net-worth buyers and retired executives seeking passive income. We structure the deal to minimize your personal guarantees after closing.
Why sell your
Private Lending
business?
Private lending operations with seasoned loan books and disciplined underwriting are attracting buyers who want yield and a proven originations engine. As traditional lenders tighten, demand for private credit has grown, and a lender with a strong track record, reliable borrower relationships, and clean portfolio performance offers exactly what acquirers seek. Larger credit platforms and investors are acquiring established lenders to gain deal flow and underwriting expertise, and they pay well for operations with documented performance and repeatable origination. Scaling a lending business takes capital and infrastructure, from servicing to compliance to funding relationships, and those needs grow with the book. Selling to a well capitalized partner lets the operation expand without draining your own resources. Your portfolio performance, borrower relationships, and underwriting record matter most when they are current and documented. Credit cycles move, so capturing value while your book is performing and buyer appetite for private credit is high is a prudent decision. If stepping back, taking value off the table, or handing a proven lending platform to an active buyer appeals to you, the timing works in your favor.
frequently asked questions
We’re here to answer your questions.
Here's where we answer the most common questions about
Private Lending
How is my private lending business valued?
Private lending businesses are valued on a multiple of SDE, typically 3.0x to 5.0x. Portfolio quality measured by default rates, loan-to-value ratios, and repeat borrower relationships are the primary drivers of where you land within that range.
Will the buyer want me to guarantee the loans I have already made?
This is a negotiation point. We work to minimize your personal guarantee exposure after closing so your personal assets are protected once you retire. Loan-level guarantee structures vary based on portfolio quality.
How do I handle a loan that is currently in default?
We do not hide it. We carve it out of the deal or adjust the purchase price to compensate for the risk. Transparency about problem loans early in the process prevents deals from collapsing during due diligence.
Do I need to clean up my loan files before going to market?
Absolutely. Every file needs a clean contract and a current asset valuation. We help you conduct a pre-sale audit to ensure the portfolio is documented to the standard buyers and their attorneys will require.
Can I sell to a buyer who just wants the passive income?
Yes. Many buyers are high-net-worth individuals or retired executives seeking stable passive income rather than operational involvement. Business Advisors of America specializes in identifying these buyers for asset-backed income businesses.
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