I am going to attempt to get a loan to purchase another company and am
curious if anyone has been able to acquire funding for a business purchase
without a downpayment? I am looking to borrow between $300-$500k and already
have an existing successful business in the same field.
jtowbin | Community Moderator |
10/18/2012 - 4:24 pm
Hi, in addition to the comments above, you might want to check out the resources available in our Loans & Grants section, including the Loans and Grants Search Tool. Good Luck
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I begg to differ my name is Juelisa and i am a funding specialist of Synergy Capital. we deal with unsecured business loans without the use of your credit score. the rates start off with 15% and up so depending on how well your business is going you can get a good deal. you can call 718 761 3888 and ask for me Juelisa Simpson and then i will transfer u to my manager and he will start the process for you and u will be funded depending on how quick u work with us say if u give all your information/documents on time then u will get funded quick as possible. just cal 718 761 3888 ask for Juelisa Simpson/ Mrs Simpson and i am available from 9-5 Mon thru Fri
*** NO FEE TO START ** NO OBLIGATION ** JUST I ASK FOR YOUR INFO AND THATS IT
YOUR OWN YOUR WAY ***
Not likely without a downpayment. The reason is that all loans - business or
otherwise - are underwritten at 80% loan to value - that is how the market
works. Thus, without some downpayment, there is just too much risk to the
lender.
Two options:
1) If the business has more value then the purchase price - i.e. the business
is worth $300K and the asking price is $240K - then, you already have the 20%
needed for the loan. Now all you have to do is prove the value.
2) Ask the owners to hold the note on the business. You might be able to get
them to finance with less money down - if they beleive in the longevity of
the business - they will at least concider it.
Other than that, start looking at your personal assets to see if there is any
equity in those assets that you can tap for the downpayment or look for a
partner with money.
Not likely without a downpayment. The reason is that all loans - business or otherwise - are underwritten at 80% loan to value - that is how the market works. Thus, without some downpayment, there is just too much risk to the lender.
Two options:
1) If the business has more value then the purchase price - i.e. the business is worth $300K and the asking price is $240K - then, you already have the 20% needed for the loan. Now all you have to do is prove the value.
2) Ask the owners to hold the note on the business. You might be able to get them to finance with less money down - if they beleive in the longevity of the business - they will at least concider it.
Other than that, start looking at your personal assets to see if there is any equity in those assets that you can tap for the downpayment or look for a partner with money.
I have to disagree with the "if the business has more value then the purchase
price - i.e. the business is worth $300K and the asking price is $240K -
then, you already have the 20% needed for the loan. Now all you have to do is
prove the value." statement.
I have some experience underwriting commercial loans, and the way that most
underwriters would approach that situation is to use the lower of purchase or
appraised value. The question the lender would ask is why would anyone sell
something at a 20% discount. To be honest the market is usually pretty good
at arriving at a fair price.
With current economic conditions, finding a no down payment mortgage can be
difficult. Many veterans may not be aware of the benefits of quick loans or
payday loans. Quicken loans & payday loans is always ready to explain how it
can be a great option for those who have served our country.
Most lenders will not approve such a loan due to the lack of “skin in the
game”. It makes it a lot easier for borrowers to walk away from a loan when
there is no equity you can see that in the housing market.
The fact that you might not have the cash does not mean that a loan could not
be structured in a way that might satisfy a prospective lender. You mentioned
that you already have an existing business. Is the business that you already
own, leveraged in any way?
If you have an existing business that is profitable, has some value, and
provides a positive cash flow…. It is possible that you can get a loan
structured by allowing a lien on the existing business.
There are a lot of “ifs” and everything is dependent on the particulars
of your situation so speaking to one of the free advisors at SCORE.org will
be the best thing you can do. Someone needs to go over the specifics in
detail.
jtowbin | Community Moderator | 10/18/2012 - 4:24 pm
FundingSpecialist | Window Shopper | 10/18/2012 - 1:06 pm
FundingSpecialist | Window Shopper | 10/18/2012 - 1:07 pm
YOUR OWN YOUR WAY ***
BMT | Window Shopper | 10/8/2012 - 10:10 am
otherwise - are underwritten at 80% loan to value - that is how the market
works. Thus, without some downpayment, there is just too much risk to the
lender.
Two options:
1) If the business has more value then the purchase price - i.e. the business
is worth $300K and the asking price is $240K - then, you already have the 20%
needed for the loan. Now all you have to do is prove the value.
2) Ask the owners to hold the note on the business. You might be able to get
them to finance with less money down - if they beleive in the longevity of
the business - they will at least concider it.
Other than that, start looking at your personal assets to see if there is any
equity in those assets that you can tap for the downpayment or look for a
partner with money.
rateguide | Window Shopper | 10/10/2012 - 9:07 pm
price - i.e. the business is worth $300K and the asking price is $240K -
then, you already have the 20% needed for the loan. Now all you have to do is
prove the value." statement.
I have some experience underwriting commercial loans, and the way that most
underwriters would approach that situation is to use the lower of purchase or
appraised value. The question the lender would ask is why would anyone sell
something at a 20% discount. To be honest the market is usually pretty good
at arriving at a fair price.
lasily01 | Window Shopper | 10/8/2012 - 5:13 am
difficult. Many veterans may not be aware of the benefits of quick loans or
payday loans. Quicken loans & payday loans is always ready to explain how it
can be a great option for those who have served our country.
rateguide | Window Shopper | 10/4/2012 - 2:01 pm
game”. It makes it a lot easier for borrowers to walk away from a loan when
there is no equity you can see that in the housing market.
The fact that you might not have the cash does not mean that a loan could not
be structured in a way that might satisfy a prospective lender. You mentioned
that you already have an existing business. Is the business that you already
own, leveraged in any way?
If you have an existing business that is profitable, has some value, and
provides a positive cash flow…. It is possible that you can get a loan
structured by allowing a lien on the existing business.
There are a lot of “ifs” and everything is dependent on the particulars
of your situation so speaking to one of the free advisors at SCORE.org will
be the best thing you can do. Someone needs to go over the specifics in
detail.
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