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    4 Replies Latest reply on Mar 2, 2010 10:51 AM by expertconsult

    Finding a loan for a convenience store.

    convience Newbie

      I've checked with the local banks in my area(Phx, AZ) and having no luck. I'm looking at a local convenience store that has been in business for 35 years. It's grossing 490K and cash flow of 100K annually. I qualify for a SBA loan with my credit score and retail experience, but here's the problem I'm running into. I filed BK and it was discharged in 12/05 and most banks won't consider me.

      I know it doesn't look good, but is there a bank that can finance me?
        • Re: Finding a loan for a convenience store.
          alytus Scout

          try private investors
          • Re: Finding a loan for a convenience store.
            phanio Pioneer
            Question: How much are you seeking in total? Do you have money to put down? There are many ways to finance this purchase. Yes, a Bankruptcy just 4 years ago will stop the banks - but there are other ways.

            1) You can break down the purchase into parts - like real estate - then inventory - then goodwill. Then, try to get a loan for each one until you get your total amount.
            2) You ask the current owner to carry the note. You put down 10% - if you can come up with that. Then amortize the remaining over 20 years to set the monthly payment - then set a balloon note in five years. Thus, when the balloon is due - your BK will be off your report and you will have 5 years of expereince - both good for bank loans.
            3) As stated, look for a local private investor - get out in your community and network.
            4) Find a partner that does not have the same weaknesses you do and buy the business together.

            Business Money Today
            • Re: Finding a loan for a convenience store.
              amspcs Ranger
              I have a couple of suggestions. Please provide contact infol.

              • Re: Finding a loan for a convenience store.
                expertconsult Newbie
                Private investor may be your best bet, however there may be alternatives. Todays business world is "going green"; there are foundations that will provide funding for green endeavors. If your business plan shows renewable energy sources in the store or perhaps innovative technology in the coolers you may be eliglble for very low interest loans or even a grant from a Foundation.

                Another area for your consideration is that of jobs...will you be creating jobs? if so how many and what will the economic impact be?