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7 Replies Last post: Sep 9, 2008 11:08 PM by GrowthCurve

Seeking funds for small business purchase low credit score

Sep 9, 2008 9:53 AM

Click to view philpeb's profile Start-up philpeb 2 posts since
Sep 9, 2008
I am seeking funds to purchase a small business. My problem is I have a bankruptcy this year. My credit score is 596. I'm located in Ohio. I have tried to locate honest companies on line, and so far only have come up with people who wish to rip you off. I realize my chances are of getting the funds I need are slim, but I am not willing to give up yet.

The small business I want to buy is a Yard Card business. I figure the $2,500.00 to purchase the business and $1,500.00 to get it off the ground for advertising, business cards , and fliers. This is a business that I will run from my home, so there won't be any rental of any property involved.
Any help will be greatly appreciated.
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Click to view GrowthCurve's profile Mogul GrowthCurve 152 posts since
Jan 25, 2008
1. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 10:34 AM
What is a yard card business? Once I understand your business, I may be able to offer you some advice.
Click to view phinsm's profile Authority phinsm 8 posts since
Aug 26, 2008
2. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 10:51 AM
in response to: GrowthCurve
I assume it was a typo and yard care is the business. But let's see...
Click to view LUCKIEST's profile SCORE LUCKIEST 7,912 posts since
Aug 6, 2007
3. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 11:06 AM
Seeking funds for small business purchase, Welcome

Tell us more. What is a " Yard Card business"??

Do you have a Business Plan??
Click to view Fortis's profile Mogul Fortis 239 posts since
Jul 24, 2008
4. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 11:10 AM
phileb,

Good afternoon, hope all is well. What type of help are you looking for? Are you trying to buy a landscaping company?
Click to view philpeb's profile Start-up philpeb 2 posts since
Sep 9, 2008
5. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 12:26 PM
It is a Yard Card business. Not yard care. The business is a lawn greeting card business. Such as for birthdays, new baby being born. The business I wish to purchase is called Buckeye Yard Cards. This is the web site link to it so you can understand more about what I am talking about. http://buckeyeyardcards.com/
Click to view Bridge's profile Mogul Bridge 359 posts since
Jun 3, 2008
6. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 10:29 PM
Try asking the seller to provide financing. Seller financing is common for small businesses; it shows that the seller believes in the business they are selling.

You are not looking for a lot of money and they should be open to it.

Best of luck,
Greg
Click to view GrowthCurve's profile Mogul GrowthCurve 152 posts since
Jan 25, 2008
7. Re: Seeking funds for small business purchase low credit score Sep 9, 2008 11:08 PM
in response to: philpeb
Just to be sure we understand...you're talking about buying this exact business, not a franchise, correct?

If so, it seems the only thing you're really getting for the $2,500 are the yard cards and the Web site.

It might not be a bad deal as my guess is you'd spend at least that amount replicating these assets.

However, how good a business could this be if the owner is willing to sell it for only $2,500?

I would try to get the seller to hold the note for a year or do the whole thing on an earn-out (meaning you pay the $2,500 off only when the business generates enough cash flow for you to pay it off).

You can always trade price for terms, too. Maybe you bump up the price a little if the seller is willing to hold a note.

Another option could be for you to get creative and strike up a marketing agreement with her and an option to buy the business later. You would basically do the marketing and act as the owner of the business without actually owning it, then you could see if there's really any money to be made here before buying it.

What's the economy like in your area? I am thinking that spending $70 on a card for a lawn is going to be pretty low on people's list when many people can't even pay their bills.