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    4 Replies Latest reply on Aug 22, 2009 12:11 PM by MoveForward

    Buying existing Cafe' and need financing........

    Kelby_Lindsey Newbie
      Hello, this is our first post here. This seems to be a great source of information! Here is our situation. My wife and I are going to be buying the cafe' that my wife has been managing for a few years. Whats the best way to go about getting financed? The total asking price is around $200k, the owner wants $50k down and she will carry the rest on a contract. The cafe is, and has been making money even in the bad economy.

      I (the husband) have been in flight school for the past 3 years, I am just now going to be starting a "real" job. Both my wife and I's credit has taken a lot of hits in this econmy. Whats our best bet for getting this $50k?

       

      Also, we do have a few co-signers if needed.

      Thanks everybody!
        • Re: Buying existing Cafe' and need financing........
          LUCKIEST Guide
          Buying existing Cafe', Welcome

          How exciting. If you need to raise money to buy a business, you need a business plan.

          How soon do you plan on buying this Cafe??

          Do you know about SCORE?? SCORE is FREE and can help you

          Good luck, LUCKIEST

           

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            • Re: Buying existing Cafe' and need financing........
              wilfin Adventurer
              Luckiest, please understand I'm just asking, but do you post the same generic reply to everyone?? Just to build up
              points, for whatever they are worth??? Score has it's benefits but does it really help those looking for actual financing?

              Again, please understand all I am asking really is do you point people in the right direction for financing? Just curious what
              your actual role is. Again, I come in peace and just starting a dialogue. If you actually can be of assistance,that's great.
            • Re: Buying existing Cafe' and need financing........
              phanio Pioneer
              There are many optiosn for you and your wife. Have you looked in a SBA loan? Many banks would work with you given the owner carry portion and your wife's experience. I like the idea that the current owner is will to hold the note. Shows their faith in the business - don't let this one get away.

              There are also unsecured lenders that could and would fund the amount you request. Or, micro loan organizations that will fund up to $50K for existing businesses.

              You might even try using personal assets - like home equity for the down payment Or even hit up your friends and family for the money.

              Business Money Today
              www.BusinessMoneyToday.com
              • Re: Buying existing Cafe' and need financing........
                MoveForward Scout

                 

                I have to say, I am normally totally against anyone purchasing a business right now but your whole plan sounds very sound and stable.

                First off: Luckiest is the person you would want to work with SCORE has been a HUGE help to be way back when I started my business and I continue to rely on them for mentors. SCORE is retired business owners who understand where you are and defer you from mistakes commonly made. Best of all you will
                then also have a personal mentor to speak too who understands you situtation.

                Second: The other statement to you was also great advise. The Small Business Admin. is a asset (they also lead me to SCORE). I am near a university so we have a SBA near my office that is affiliated with the university. Check and see if you are close enough also because besides online information they have awesome library of knowledge you can browse through and classes. http://www.sba.gov/aboutsba/sbaprograms/onlinewbc/index.html

                Third: Your situation is perfect. Why because, your wife can see the business is a success. She
                understands the day to day operation of the business. She knows the cliental it attracts. And she
                understands the million of hours it takes to work with it. PERFECT! Better yet, you are ready to
                begin a top paying job and although the economy is hard you will be able to find work, you may be
                flying for UPS, commerical or private but you will be flying. So...your lender will see you as a safe loan.

                Fourth: You stated credit was now damaged and judging from schooling and your wifes lower paying job
                to off-set the bills it is okay and totally acceptable for your sitituation. My suggestion would be to talk
                to the lender about rolling your credit debt in with your loan.

                Fifth: On the loan you need...have you asked the business owners who they have there loan with and
                see if this lender would work with you? The lender already understands the business and the background
                of their success. If the loan is paid, find out who they went through. Another option: Locate a silent partner one that would have a finacial interest only. They would be paid back with interest and have a small percentage of the profit of the business for a given length of time. Also as it was stated the SBA has loans

                 

                I strongly suggest you put this loan under your wifes name, grants are easier. Look at this Women's

                 

                Buisiness Group website http://www.womensnet.net/ (Women Net) they have a list of helpful grant
                information.

                Sixth: Once you have the business DO NOT change it right off the bat. SO many do this. But if it is
                running fine and you know it is successful do not rock the cart! In time slowly incorporate your changes
                while watching to see if they hurt or support the business.

                My Very Best to you!

                P.S.- WILFIN...I am really confused, according to your bio you are a finacial person...did I miss you support
                and commits of help to these individuals? Luckiest, you are helping so many on a daily bases keep doing
                what you are doing.