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    1 Reply Latest reply on Sep 23, 2009 7:36 PM by MoveForward

    HELP!! How do I get financing for an existing business?

    elecs7 Newbie
      This is a restaurant/night club. Do I have to write up a business plan? What do I need to get from the current owner to show the bank that its a very profitable established business? Should I try to get an SBA loan? Any help and advice would be greatly appreciated!!

      Thank you.....
        • Re: HELP!! How do I get financing for an existing business?
          MoveForward Scout

          See if this helps you.

          Picture this....
          You have an 18 year old who will graduate from
          high school in May. He talks about his vision of being a
          teacher after high school. When asked by his grandmother
          about his plans after high school (months away) on
          becoming a teacher. He says " I am going to find a
          school to go to, then find a school to teach at"? She
          wanted to know how much money he will need and
          where the money will go, yet he had no idea and said
          he will figure it out as he go's along. Is this
          a sound plan for the future? Does it sound like this
          18 year old has a clear plan for his future? Based on
          years of knowledge I bet the Grandmother knows she
          better quickly step in and make sure this grandson
          has a mapped out plan.

          Learn from my mistakes, I also questioned the business
          plan, but when I found the Small Business Administration
          and SCORE I learned how important the plan was and
          all will be. This is my map with plenty of room for additional
          growing.

          I suggest you ask the past owner for their past 5 year

          tax records. Review them. Ask them about any outstanding

          bills and assure them you will not be responsible for them

          (include this in your agreement). If this is rental property

          speak one on one privatly with the landlord to assure

          you can take over the lease and listen to any concerns he

          has with working with these past owners. Send in two

          seperate couples to eat at this location and review. Make

          sure on uncover patron visits during the businest hours.

          Check with the Better Business Bureu and Health Dept.

          to assure there are no current or past problems that will

          haunt you. If this establishment sells alchol you will loose

          your lic. for approx. one day to one week while you re-establish

          the lic. to you, this includes a new business review. Most

          important make sure this establish is not Grandfathered

          through the city planning department to assure changes will

          not happen once you request the business licenses.

          Since this is an established business that the current owners

          can show a profit, there bank would love to keep your business.

          The seller should want to assist you in meeting with this bank

          with your business plan. SBA does not know you like this

          bank within this community will.

          If anything pops up within the business records, or elsewhere
          that sends off a red light...walk away, the economy will not get
          better right now. Instead start planning and saving for a future
          establishment you create.