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Yes, to both scenarios.1 of 1 people found this helpful
Lots of lenders - non-bank and bank lenders - love to see owner financing as long as the business being purchased is profitable and can demonstrate this with financials and tax returns. There are also lenders that provide unsecured personal loans for the amount you are seeking as long as your credit is strong and you can demonstrate an ability to service the payments.
80% LTV is usually the maximum (like a mortgage) that lenders will lend but this also depends on how strong the business and the borrower. However, if you have to borrow the 20% - some lenders will look negatively on this as your overall debt-to-income ratios will be impacted. Just keep in mind, the more you can come up with for a down payment - the better your chances of securing financing for the rest.
Do you have any personal equity that could be used? This would greatly help your chances? Or, might think about borrowing the down payment from friends and family - something that would not be on your credit report or find a limited partner that will provide the down payment in return for a percentage of profits until the amount is paid back.
Just some thoughts