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    1 Reply Latest reply on Jul 22, 2009 1:27 PM by phanio

    Financing for Home-based business

    Penlims Newbie
      I am trying to purchase a home-based business that makes custom sterling silver braclets and I am having difficulty getting funding for it. The asking price is $95,000 and the business has demonstrated increasing income over the last 3 years since it was started.

      I have been told that I can't be funded because there is no property purchase involved and because I have poor credit. Part of the reason that I want to acquire this business is to increase our household income. I already have a full-time job and I plan to retain that as well.

      Does anyone have any recommendations on where I could get funding or partial funding?

        • Re: Financing for Home-based business
          phanio Pioneer
          Couple of options for you: First, will the current owner finance it for you - meaning they hold the note. If you can put down say 10% - let the current owner finance the remaining balance on a 5 or 7 year balloon note. This will help you ge the business and also let you know that the current owner is confident that the business will continue to make money.

          Other options would be to use personal assets to secure the loan - e.g. home equity, vehicles, etc.

          Laslty, there is the old fall back of asking friends and family to help you out.

          If you could take some time and improve your credit - there are many more options that would be open to you - including SBA loans or inventory loans.

          Business Money Today