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    4 Replies Latest reply on Jun 26, 2009 6:38 PM by handsofjoy

    Buying a business without any capital

    Kmsnur Newbie

      Hi....

      My Name is Kevin, from Schenectady, NY. I would like to buy a business but I do not have any capital and very little equity in my house. I have a background in business management including accounting and sales and marketing. Last year I tried to buy a Laser Tag business had a great business plan, was able to secure financing, and was 1 week from closing when it discoverd that the owners did not have a valid Certificate of Occupancy. As a result, the owner back out, the bank pull the financing, and all the money I had was lost in Bank Fees and Legal Fees.

      While it left a bad taste, I still believe I can be a successful business owner. Before I begin looking again, I need to make sure I that I have options to get finance.
        • Re: Buying a business without any capital
          phanio Pioneer
          Your options would be as follows:

          Owner financing - will the owner of the business consider financing the buisness. This way, you can use the profits from the business to pay the owners.

          Find a partner who has the things (money, credit, equity) that you don't.

          Friends and family - they know you best and should be willing to help you.

          There are other sources of funds - from non-bank lenders (unsecured and secured) which are usually easier to get than bank loans.

          Business Money Today
          • Re: Buying a business without any capital
            robertson240 Newbie
            Hey Kevin,

            My suggestion would be to establish a strong business credit score with you company, that way the banks are more likely to issue you credit to purchase. It is completely seperate from you personal credit, so it really does not matter what your FICO score is. Plus if you are starting a business you wold want to keep those seperate anyways. You will have to incorporate however.
              • Re: Buying a business without any capital
                Kmsnur Newbie

                Hi,

                Thanks for the response, my problem is that I do not have a business to incorporate. I would have no problem incorporating a business, if I had an business to run, setting up a corporation just as a shell will not get me a credit score unless I am actively doing business.
                • Re: Buying a business without any capital
                  handsofjoy Newbie
                  How do you establish credit through your business. I have tried to use my ein number and I also have started accounts and paid them on time to establish business relationships. I still can't get any business credit, just using the business itself. I started my company with my own funds and now that I want to expand and get new equipment it has been a struggle. I am not looking for an amount that is huge--just enough that I can pay back in a short time.