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Loans to purchase a business

by msilver5464, Window Shopper

  • Created: November 6, 2011, 11:18 pm
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2 comments

I am looking to purchase an exisiting business that I have been personally working at since 1996. The owner has told me that he is getting too old to keep up with the business and said that he wants to sell it. Since 1996, I have learned about the area, know all the customers, know all of the police, fireman, and EMTs, mayors, and councilmen. I work with all the schools, private and public by offering them discounts should they make orders with us.All of the receipes came from my grandfather who orginally owned the pizzeria/restaurant until he sold it to the owner that I work for. Since I know all the receipes, know the customers, and have been managing the business since 1996, I feel it is the right move for me to purchase this restaurant back from the current owner.I heard that people who are disabled may quaify for loans better than people without a disability, is that correct?

Tags: Discuss Popular Topics, Loans & Grants
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phanio | Contributor | 11/29/2011 - 8:12 pm

There are some programs for disabled individuals - but, know this, you still have to qualify for the money - and that means solid credit, collateral and cash flow. Why not ask the owner to finance it?  If you could come up with a little down payment - then finance the rest from the owner - making the payments to him instead of a bank. He gets a monthy income plus he earns the interest on the loan and if he believes in you and the business - he should be ok with it. You can make the small down payment, finance the rest say for 7 years with a 4 or 5 year balloon payment.  When the balloon comes due in say 4 or 5 years, you will be established as the business owner and would have a much better chance of getting a loan from the bank to pay off the remaining 2 or 3 years of the loan. My suggestion and probably your easiest way to get a loan these days, is to ask the owner to finance it and you can own and run the business while the business makes the payments to the current owner. Best of luck!
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kmurray | Community Moderator | 11/7/2011 - 11:08 am

Hi Michael, Check out our resources about buying an existing business. In addition, our blog post, "The Legal Steps to Buying a Business," on our Business Law Advisor blog. You may also find our post entitled "Disabled Entrepreneurs" useful. To find loans and grants that you may qualify for, use our Loans and Grants Search Tool.