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    8 Replies Latest reply on Apr 5, 2011 2:33 PM by amspcs



      HI ALL

      I am thinking to buy a restaurant building.  I have 18K and restaurant is asking 99K.  My guess they will not mind 90K.  However, 18K only covers the down payment for SBA loan.  I would like to get financing of 100% for this property or find at least 15K additional loan.  How will I do that?  I went to SBA website, I find myself chasing my tail on that website with no result.  can anybody help me with useful information.  thanks

        • I NEED FINANCING HELP BADLY!! restaurant
          amspcs Ranger

          I think I have a solution for you..  Please provide contact info. 

          • I NEED FINANCING HELP BADLY!! restaurant
            MindNt Newbie



            Have you ever tried Hard Lending Money.


            Go to google and you can find more about that.

            • I NEED FINANCING HELP BADLY!! restaurant
              tayl428 Newbie

              Sounds like an SBA loan would be your best bet.  Find a local SCORE office near you, they have volunteers there to help you through the entire process pro-bono. The website is initially very difficult to understand.  Don't worry, it will all make sense with time and READING.

              • I NEED FINANCING HELP BADLY!! restaurant

                You can also try to do a buyout. I would try and contact the current owners and see if they can provide some type of owner financing. If this is possible you then use your 18k to try and obtain a bridge loan for the value of the property. Note that depending on the value of the property thay will only lend 70% max and the interest is high. Plus a jumbo payment will be due in full at a period of 3-4 years max. Yet it gives you time to a obtain the business, with not so much money out of your pocket. During the 12-24 months od operation you should be able to get a loan to cover the cost of the Bridge Loan and help lessen the owner financing. {likely to be 50% of cost] if you have a good direction with taxes and expenses this might be the way to go.



                • I NEED FINANCING HELP BADLY!! restaurant

                  Ask the owner to finance the purchase, and base what you pay them on the performance of the business.  As with all bank loans, if the business fails you will be expected to repay the loan.  If you can't repay the loan or work out a settlement, you run the risk of judgements, wage garnishment, and judgement liens.  I'm a little jaded because I handle SBA workouts, but I've seen enough businesses fail to believe that when you get into these deals, you need to have a viable exit strategy before you spend a penny on the business


                  I'm not trying to scare you, but it's important to understand what you stand to lose if the business fails.  Banks can get downright nasty if you default on a loan.  But if you have owner financing with a defined "earn out", you will be limited the downside risk.

                  • I NEED FINANCING HELP BADLY!! restaurant
                    phanio Pioneer

                    The only way you are going to get 100% financing is if the property (real estate) being financed is valued at 120% or more of the purchase price.


                    If you can convince the owners to take a small down payment and finance the rest - once you have the restaurant in your hands, you can look at other forms of financing like a Business cash Advance or micro loans.  We offer information on many sources of capital to purchase a business on our website.

                    • I NEED FINANCING HELP BADLY!! restaurant
                      JackieGold Scout

                      Merchant cash advances are a common method that many restaurant owners use to fund their businesses. I know Entrust Cash Advance works specifically with restaurant and other food industry companies to help provide them with the finances they need. Check it out.


                      Good luck!

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