When buying a business, you’re planning a journey that, upon lift off, will soar for many years. To prepare for this lift off you need an ample runway. Careful business planning that considers realistic operating costs and working capital are a must.
FINANCING OPTIONS
Since institutions will typically only provide 80% to 90% of a purchase, most business purchasers use a combination of alternate sources to raise the required capital. Here are numerous effective methods of raising capital.
These options can be blended to achieve the maximum capital at the lowest cost. While every business plan is different, options are listed in an approximate order of most common to least common.
Important Note: If you are currently working as you plan your new business, you may want to start a business loan process BEFORE you quit your job, as many loan underwriters check with your employer to check current employment.
- Personal Checking, Savings and Securities Withdraws.
- Seller Financing: Most buyers and sellers consider due to advantages for both parties.
- SBA Loan: The Small Business Administration assists in loans from $100K – $5M.
- Loans from family members or friends.
- Asset Sale: Sell something: real estate, a car, a boat, an antique, a collection, etc.
- Loans against a Checking or Savings Account.
- Loans against Securities or Retirement Accounts (IRA, 401K, etc.).
- Loans against Life Insurance Policies.
- Credit Card Cash Advances.
- Personal Lines of Credit.
- Home Equity Loans/Lines of Credit “HELOC”.
- Refinance Real Estate: “Cash Out Refinance”.
- Finance an Asset: Boats, cars, collections, antiques, etc.
- Roll Over Business Startup options: “ROBS”.
- Leasing equipment, furniture, and vehicles instead of purchasing them.
- Commercial Loan: Available at a bank or finance company.
- Economic Development Programs: Check with state and local governments.
- Angels: Wealthy individuals enjoy investing in small businesses; with the return of course.
- Venture Capital: Trading a percentage of ownership for capital from a group of investors.
Questions about the Financing Options? Email Steve at Steve@vbexits.com. Phone : 1-602-578-2581
Bio:I'm Steve Sudlow, Accredited Business Broker. I have put many deals together from 500K to 25M and can go to 150M revenue companies in (Arizona, and Utah).
I help business owners navigate the process of selling their business and maximize their sale price when they are ready to sell their business. I can meet with you in person, or we can talk more about the process over the phone at a time that works for you. I'm ultra confidential when selling a business, so none of the employees or managers will know that anything is going on as far as selling. I do off-site meetings with potential prospects and qualify them out, as 90% of all buyers are just tire kickers!! I weed all that junk! Out! So you can concentrate on what you do best! Which is running your company?I have a top! SBA lenders and (Private Equity) lenders that get the deal done! I don't make any money having a listing sit in my portfolio, collecting dust!. I make deals happen, pure & simple.- 91% Success Rate
- 43M Deals Closed
- 180 Day Selling Process
- Absolute No Upfront Cost
- 100% Confidential
- Multiple Offers From Qualified Buyers