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I have an idea! Ask the current owner's to hold the loan for you. You make up a contract with them paying them so much a month plus interest in say for example a five year period of time. ( A business contract) Then at the five year period you add up money you paid to owner's minus interest and go to the bank and tell this this amount is your downpayment.
Welcome to this website. Prime Gifts had a good idea. You will receive many answers and offers to help you
purchase this business. Yes there are other options and avenues available to help out.
Do you have a Business and Marketing Plan?? Investors and Lenders will want to see one.
SCORE will help you develop a Business plan FREE of charge.
Good luck, LUCKIEST
I have considered doing a contract with the owners. I do have a business and marketing plan. I have a business degree and the banks were very impressed at my plans and the time I put in them but an impressive business plan won't cover the collateral needed for the loan.
I think it will depend on how motivated the owners are to sell the business if they are willing to do a contract with me.
Thanks for the reply.
Where are you located and is the building that the business is located in for sale.
I see that the normal responses have hit this thread as well, so allow me to clarify. There are lending programs (that my firm works with) which have no minimum collateral requirements for business acquisition. I would be more than happy to speak to you in greater detail. Please copy this post and email me at email@example.com.
I look forward to working with you,
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I am trying to purchase a business I have managed for 3 years. My problem is like many others in this situation, there is not enough collateral to secure the loan. The buisness is making over 200,000 a year and will have instant cash flow as soon as I take over. The owners are asking $290,000 and I have $72500 cash injection (25%). The problem is that it is a fitness facility so you are selling a service and there is only about $40,000 in assets. I have talked to 5 banks and they all say that there is insuffient collateral. Is there any other options or another avenue I haven't thought of?