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    1 Reply Latest reply on Aug 13, 2009 5:04 PM by ROOFBAR

    Purchasing an existing business

    JacoWooten Newbie
      Hello all! I'm new to this forum. I have never owned my own business. I have experience in retail management and am an enthusiast of the products that I intend to sell. The following information I am asking about is geared toward understanding what information I will need to secure a loan to purchase the business I am interested in.

      I have considered buying a local coffee shop. I contacted the current owner to see what the asking price for the building was and what equipment was included with the sale and am semi pleased with the answers I received. I asked the current owner for some details pertaining to costs associated with the business as she is currently running it. She said she does not want to disclose her confidential information. I am asking for utility costs, vendor info, traffic info, lease details and other pertinent (as I see them) details.

      What are the things I need to be asking for and what should I expect to receive from a seller that is motivated to sell? What is it that a bank will be wanting to see from me to be willing to give me a loan to purchase this business. I don't have alot of cash, but I do have technology and software that will enable me to conduct the business. Are these assets considered when a lender is considering a loan?

      I am eager to read what anyone might have to say about this.

      Thanks,
      Steve
        • Re: Purchasing an existing business
          ROOFBAR Newbie
          One thing I found out the hard way was making sure if you need certain permits..that the previous owner should be responsible for updating ALL permits before the sale goes through. Some permits may have a late fee that must be paid prior to renewal and you don't want to get stuck with those fees. Also make a exact assets list and give your self a nice money cushion. Look through all the assets to make sure they work...computers, hardware, coolers, AC units....you should buy the product as it was when it first started.