My wife and I are trying to buy an existing business. Need loan advice The
owner is selling for health reasons and we know the business has turned
higher profits every year since it has been open.
Our problem, my wife and I have been through 4 major surgeries since 2008 and
our personal credit has taken a huge hit. Is there any way to obtain
financing under these conditions? The business is a franchise and they will
not release the records for the business until the bank gives a letter of
resale. The last bank I talked to said it was too much liability to sign to
have the records released, yet there is no liability for them if the number
don't support the loan amount and terms.
If anyone can shed some light on how to proceed. We have 10% of the cost of
business at $398,000. The business also has half its worth in retail
inventory.Thank you for your help
Have you considered asking the current owner to carry the loan or a portion
of it? He/she may like the idea of having a stream of income coming in each
month.
the loan finder | Window Shopper |
5/22/2012 - 6:51 am
What sort of personal assets do you have to use as colateral? If your credit
is bad then lenders will require a higher level of security, or in effect be
willing to lend less. If you own your home then I'd suggest looking at a home
equity loan or line of credit, or perhaps refinancing with cash out. All of
these allow you to raise funds at very low interest rates. Any cash you can
put towards the costs to buy will give a lender greater comfort in providing
a loan for the balance.
Need to raise funds? Be careful who you borrow from - bad decisions can
cripple your new business so do a little looking around before you committ.
I do not understand why you need a third party to release any financial
information. The current owner should have his own records as well as all of
the information on the related debt.
Loan is a only best resource to buy that business, if you are not getting
loan from bank easily then better try in some private financial company. The
existing business is really giving good profit then definitely they give you
loan. All the best.
BizResearcher | Window Shopper | 5/22/2012 - 12:20 pm
of it? He/she may like the idea of having a stream of income coming in each
month.
the loan finder | Window Shopper | 5/22/2012 - 6:51 am
is bad then lenders will require a higher level of security, or in effect be
willing to lend less. If you own your home then I'd suggest looking at a home
equity loan or line of credit, or perhaps refinancing with cash out. All of
these allow you to raise funds at very low interest rates. Any cash you can
put towards the costs to buy will give a lender greater comfort in providing
a loan for the balance.
loanuniverse | Window Shopper | 5/18/2012 - 10:23 pm
information. The current owner should have his own records as well as all of
the information on the related debt.
What is this letter of resale that you speak of?
eileen | Window Shopper | 5/18/2012 - 1:07 am
loan from bank easily then better try in some private financial company. The
existing business is really giving good profit then definitely they give you
loan. All the best.
cpenza22 | Window Shopper | 5/16/2012 - 11:09 pm
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