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    5 Replies Latest reply on Jan 31, 2008 3:16 PM by CorpCons08

    Loan to purchase an existing business

    desperate Newbie
      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?