Buying A Business? The 1st Step

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Published April 22, 2019

 

Buying a business?  Figuring out what you want is the first step.

 

A dream about owning a bar on the beach might not be realistic if you’re looking to have your evenings free to spend with your kids.

 

What do you want your life to look like? What kind of hours do you want to work? What’s going to get you out of bed every morning? These are the kinds of questions you should be asking.

 

A lot about the buying process is deciding what your goals are and then finding businesses that fit those goals. If you don’t know what your goals are, have a talk with an experienced and qualified business broker about what you want out of business ownership.

 

Some people take the jump into entrepreneurship because they want to be their own boss, have control over their own schedule and work for themselves. While these are some of the benefits of owning your own business, they aren’t really well-defined goals. More well-defined goals might be I want to spend evenings with my family, I don’t want to have a job that requires a lot of manual labor and I want to stay within a defined budget in terms of purchase price.

 

You might be surprised that the industry and business has you had initially wanted won’t fit with your goals at all, and another business you would never have considered would better fit the life that you’re looking to have.

 

It’s important to remember that when you buy a business you are essentially buying yourself a job – so just like with a job search you need to have well-defined characteristics that you’re looking for. For instance, when you look for a job you look for jobs you would be qualified for, hours that would fit with the schedule you’d like to have and a location near where you live. You also might consider the amount of money you need to make to maintain your lifestyle. The same goes for buying a business. These are the type of well-defined goals you should come up with.

 

Another consideration? Your family. Whether you want it to be or not, having a business is a family affair. Owning your own business means the buck stops with you, so sometimes that can mean sacrificing time with your family to keep the business running – or maybe even having to bring your family members in as employees in a pinch. It’s important when you start the business buying process that everyone in your family is on the same page and are also on board with potential sacrifices because you don’t want to have issues down the line. An important note here – if you are expecting your children to work in and eventually take over the business, you need to make sure that they are ready, willing and able to go down this new career path with you.

 

If you are ready to start your business search, sit down with your family, come up with a set of goals and realistic expectations for life as a small business owner. Then talk to a business broker about these goals and they can help steer you towards a business that will fit (and make you and your family happy). 

 

Have you always wanted to own your own business but haven’t yet come up with a list of goals for business ownership? Would you like to know what types of businesses would fit with the life you’d like to have? Please ask us! Leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Why Your Broker’s Referral Rate Is A BIG Deal

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published April 15, 2019

If you are looking at businesses to buy or are thinking about selling the business you own, you should really, really care about referrals.

 

Buying and selling businesses can be a tough and messy thing to do, so there are professionals out there called business brokers who help buyers and sellers reach a closing table.

 

Like any industry, there are business brokers who are fantastic and there are business brokers who are terrible at their job. How can you as a buyer or seller figure out if the broker you are considering working with is at the top of the game? Ask them a very simple question.

 

How much of your business comes from referrals?

 

 

Referrals happen when previous clients or industry professionals like accountants, real estate agents or attorneys find out that someone is looking to buy or sell a business. They refer that person to a business broker they have previously worked with or know on a professional basis.

 

No one is going to give someone the name of a business broker they hate, so if you are working with a broker who gets the bulk of their business from referrals – it can tell you as a potential client a great deal about how this person conducts themselves in a business transaction.

 

We, for instance, get a great deal of our business through the referral process. Like 80% or more. Does this mean that we’ve made every client absolutely happy? Nope. But it does mean that we work very hard to get our clients to their goal. We do more than is expected and our past clients see that – especially when the other broker in the transaction does little to nothing to help the deal along. The difference between what we do and what some other brokers don’t do is the reason people send their friends our way.

 

The same goes for the professionals we work with throughout the transaction process, like attorneys and accountants. They’ve typically worked with other brokers who make big mistakes and expect everyone else to do the work for them – and after working with us they send any potential business our way instead.  

 

If you want the best help on your journey to buy or sell a business, your best bet is to ask any broker about their referral rate. The good ones will be happy to tell you that they get a good chunk of their business from past clients and business associates. The bad ones will probably change the subject – and that’s a big red flag. 

 

Would you like to know more about what business brokers can do to help buyers and sellers in a business transaction? Do you have questions about our referral rate? Ask us! Feel free to leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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Buying A Business? What You Can Realistically Afford

Posted in Buyers Articles

Published April 8, 2019

Thinking about buying a business? What can you buy with the capital you have available?

 

Although there are several factors to consider when purchasing a business – like finding one in an industry where you have some practical experience or finding one in an area close to where you live – what you can afford will probably be the biggest consideration of them all.

 

When deciding what you can and can’t afford, you may need to adjust your way of thinking about the capital you have. For instance, if you have $100,000 in cash to spend, you absolutely can’t afford a $100,000 business.

 

Why not?

 

Covering the price tag alone isn’t going to be enough. You absolutely need to set aside a decent chuck of money for working capital. You need this extra capital to pay for attorney fees, for licensing and permits, for lease deposits, for first and last month’s rent, for utility deposits, for the first few weeks of payroll, for rent, for new inventory – the list goes on.

 

Wait, aren’t I buying a functioning business? Can’t I just use the money the business is making from day one? Why do I need so much working capital?

 

The short answer is you never know how much you are going to need. What if you lose an important client right out of the gate? What if you discover maintenance issues that immediately need work? What if you are taking over during a slow period of the fiscal year? You need to keep capital on hand to be able to cover the unexpected.

 

Another consideration? You will have a landlord who wants proof you can pay your rent – so not only will you have lease deposits that will need to be paid, you will likely need to prove you have the cash available for a decent amount of rent payments before you will be allowed to sign a lease. No landlord in their right mind is going to let someone sign a long-term commercial lease if they only have enough money to pay rent once in the bank. 

 

The message here is to be smart with the money you have available. Don’t overstretch your financial capacity. Doing so can put your business ownership success in jeopardy. Have an honest and open discussion with your business broker about how much money you really have available and then listen to their advice regarding what businesses you can realistically afford. By leaving yourself a working capital buffer you are far more likely to survive the bumps in the road any new business owner is sure to encounter. 

 

Would you like to know what types of businesses you could afford? Do you have questions about how much working capital you should set aside? Ask us! Leave questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

 

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Cash Flow, Your Opinion And The Listing Price – Thoughts For Business Buyers

Posted in Become a Business Owner, Buyers Articles

Published April 1, 2019

 

Listing prices can seem like they are all over the map, and to be honest, sometimes they are. Some businesses are listed for far too much – where a seller is unsuccessfully trying to recuperate every dollar they’ve ever invested. Some businesses are listed for so little it seems like they’re trying to hide some kind of massive fault. While the wide scope of prices might make all listing prices look like just an arbitrary number – for the vast majority of businesses for sale they aren’t. Sellers who are motivated to sell and who have the right help from a decent business broker will have their business listed for an appropriate price.

 

As a buyer it might initially seem difficult to determine if what you’re looking at is indeed worth what a seller says it is – especially with things like depreciation, add-backs and multiples clouding the waters. While there are many factors that can add or subtract some value from a business, the most important marker to consider is cash flow.

 

Cash flow is king because that’s what a business is.

 

It is a money-generating enterprise. The money a business makes it what gives it value. This is very different than say, a house. It is the features and aesthetics of a house that will determine it’s worth.

 

Here’s the problem. Some buyers get hung up on the aesthetics of a business, like the condition of the furniture or the color of the walls – and base their own perceived value on these physical things while completely missing the point. You need to be looking at cash flow. And you need to understand that how things currently look and the way things are currently done is what is producing that cash flow.

 

Getting hung up on aesthetics can cause other issues as well. It can make a buyer believe that a business price should be discounted based on a difference of opinion. Let’s go back to the house example.

 

If you walk into a house and you hate the design of the brand-new kitchen you can’t go to the seller of the home and say “I’m decreasing my offer by $50,000 because that’s how much it’s going to take to redo the kitchen.” That would be ridiculous, right? When you buy a house, you are buying it as-is. The same goes for businesses. If you don’t like the way a current owner is doing things or the truck they just bought for the business – you don’t get to discount the price because it isn’t something you would have chosen or isn’t a procedure you would have implemented. Again, you need to remember that the way the current owner is doing things is what is generating the cash flow that you’re buying.

 

From the outside looking in, especially with only a cursory glance, you can’t possibly understand the nuances of why a business is generating the cash flow that it does. It can be difficult to look past the aesthetics – but it is critical that you do. You need to look deeper and try to understand what it is about the way the seller does things that works.

 

It’s also a great idea to keep from insulting a seller to the point of no return by trying to get a deep discount on a business for something that is essentially a difference of opinion. Talk to your business broker about any concerns you might have, and they can help you come up with a fair offer that will (hopefully) keep the deal moving forward.

 

Are you in the market to buy a business and have more questions about the importance of cash flow? Would you like to know more about how other factors may play into business pricing? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Buying A Business? 3 Ways To Spot A Good Broker

Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles

Published March 18, 2019

 

Buying a business is a daunting task, and just like you probably wouldn’t go to court without a lawyer or buy a house without a real estate agent – a smart business buyer needs a good business broker to help them navigate the business buying process.

 

What makes a good broker a good broker?

 

Adherence To Confidentiality

 

When you first inquire about a particular business, you shouldn’t immediately get a seemingly automatic reply with the NDA (non-disclosure agreement) to sign. If you are able to gain access to confidential business information about a business that is for sale without a broker asking you anything about yourself – that broker is not doing their job. One of the most important functions of a business broker is to keep the confidentiality of businesses that are for sale. A breach in confidentiality can be disastrous for a business, and a big part of maintaining confidentiality is determining if the buyers who are inquiring about this business are even buyers at all. You might be a competitor trying to find out if you can steal the best sales staff. You might be someone who can’t possibly afford to buy this business and therefore have no reason to gain access to confidential information. You might be an employee who is trying to find out what your owner is up to so you can warn your fellow employees about the for-sale status of the place you work.

 

The point here is that it can be a bit frustrating as a buyer when you aren’t able to get the information you need immediately. It can seem intrusive that a broker wants to have a conversation with you about your finances and your work experience – but these practices are what you want to see. This diligence where confidentiality is concerned is what separates the good brokers from the bad.

 

Availability And Timely Responses

 

A good broker is busy. They are meeting with sellers, they are assembling comprehensive marketing packages for buyers, they are taking pictures and shooting videos, they are having conversations with other buyers, they are working out commercial leases with landlords and property managers – the list goes on and on. Many new buyers get frustrated when a call (or ten calls in five minutes) goes unanswered. Understand that if your broker is good at their job they won’t always be available. You aren’t their only client – and you shouldn’t be.

 

A good broker will find the time to address your concerns, answer your questions and negotiate with the other parties on your behalf. Just realize that it might not always be an immediate response and that any delay means that your broker is doing their job. 

 

Negotiation And Tied Hands

 

Buying a business is a long and often very frustrating process. Why? There are many personalities and the inherently complicated nature of a small business to contend with. In a transaction there can be buyers, one or more sellers, the buyer’s broker, the seller’s broker, the buyer’s attorney, the seller’s attorney, the transaction attorney, one or more business accountants, the property owner, the property manager and maybe even a few key employees. If you’ve ever tried to get four people to agree on where they should go for lunch, you can guess that trying to get all of the parties involved in a business transaction to agree on a complicated purchase agreement can be a monumental task. Within that task your broker acts as a negotiator and as a buffer between all those involved. This means that when you ask for something from the other side, your broker’s hands are tied if the other side is dragging their feet or refusing to cooperate.

 

The point here is the most successful business buyers are also the most patient, and they also understand how complex their transaction can be.

 

Managing expectations is an important part of the successful purchase of a business – so find a broker who wants to have in depth conversations about your goals for business ownership, your experience and the capital you have available to invest. Look for someone who answers your calls and emails in a timely fashion. Once you have a good broker understand that there are a great many things about a business transaction that they can’t control. Be patient and realistic – it’s the best way to set yourself up for the purchase of the right business for you.

 

Do you have more questions about the business buying process? Would you like to know what information is required for the NDA and why we require that information? Please leave any questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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The NDA – Important Information For Business Buyers

Posted in Become a Business Owner, Buyers Articles

Published March 14, 2019

If you are new to the business buying process, there are several steps that can seem very uncomfortable – like having to give potential sellers, business brokers and your possible new landlord access to proof of your finances (so those involved in the transaction can see proof that you can, in fact, afford the business you are about to buy). While initially unpleasant these steps are critically important for a successful business purchase.

 

One of the steps for new buyers that can seem unpleasant is the signing of non-disclosure agreements, or NDAs – but it is also one of the most important.

 

What is the NDA and why do you need to sign it?

 

The NDA is an agreement that says you will not disclose any of the information you are about to be given on a particular business – including the fact that it is this particular business that is for sale. Each business you request access to will require it’s own NDA, so the longer you shop for a business to buy, the more NDAs you will have to sign.

 

Confidentiality in business sales is of the utmost importance, so for the protection of the business and the protection of the seller the NDA is a must before any information is given to any potential buyer. It provides the seller of the business with legal protections – meaning legal consequences for a careless buyer who discloses anything about the business to someone they shouldn’t, even telling someone inappropriate that the business is for sale. Without this confidentiality people like the staff, the customers and the vendors might think the business is for sale because it is on the brink of failure (almost never true when a business is for sale) and will leave the business for better prospects somewhere else.

 

The importance of non-disclosure means if you as a buyer are uncomfortable with signing the NDA, you aren’t going to be able to buy a business. The NDA can’t be changed to suit your tastes, it can’t be amended to take the legal risks for you away – it is what it is. Sign it or don’t, but no seller in their right mind will allow a buyer anywhere near their business or their books without this all-important legal protection.

 

If it is the legal repercussions you are concerned about – you shouldn’t be. All you have to do is keep the information you are given to yourself. That’s it. If you tell your neighbor’s wife in a casual conversation at the mailbox that the business is for sale or you talk to your barber about the last three years of tax returns you’ve been shown – those potentially devastating disclosures will land you in hot water. If you talk to your broker, your attorney or your CPA about this business you are thinking about buying – there will never be a need to enforce the legal repercussions of the NDA.

 

NDAs are good for you as a buyer because they keep all potential businesses on the market safe from the disasters an inappropriate disclosure can cause. You don’t want you brand new business adventure to have been damaged by another careless buyer. You also want access to all of the proprietary and financial documentation possible before you buy so you can sure about your purchase before you write a big check. The NDA provides for both.

 

Don’t be nervous about signing the NDA, as long as you do what’s asked of you by keeping the information to yourself – it will get you one step closer to owning your own business.

 

Do you have questions about the legal repercussions of the NDA? Would you like to know more about the process of buying a business? Ask us! Please feel free to leave any comments or questions here and we will be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Maybe College Isn’t For You – The Millennial Entrepreneur

Posted in Become a Business Owner, Buyers Articles

Published March 4, 2019

 

Once upon a time, it was the American dream to own your own business.

 

Kids grew up in world where the example of entrepreneurial blood, sweat and tears was the only path to a better future for yourself and for your family.

 

Fast forward to today. Today’s kids get roped into enormous amounts of student loan debt because the new path to the American dream is a higher education. An expensive higher education. An expensive higher education that doesn’t necessarily mean a job on the other end. Que the trend of college grads moving back into mom and dad’s place.

 

This push for higher education at the expense of all other walks of life hasn’t made anyone any happier or any richer than the generation before. In fact, it’s put a large part of the millennial generation in a financial hole they might never come out of.

 

What has this push for higher education done to the entrepreneurial spirit? It’s choking the life out of it. If you come out of four, six or eight years of higher education you are probably in no financial position to take on the financial risk of owning your own business. You’ve also spent the last handful of years outside of the workforce. You may have learned a lot, but the learning wasn’t of the practical nature best suited for business ownership.

 

We’re not saying that higher education is a bad thing. What we are saying is it doesn’t have to be everyone’s path. If you see yourself 10, 20 years down the road as the owner of your own business – there’s no need to wait. You don’t need a lofty or expensive degree to be a great entrepreneur. You need drive and passion.

 

Instead of asking your folks to send you to college, maybe the better path would be to invest in a business. Buying an existing business can be less risky than starting from scratch and it allows you to take the reins from a seller who will be able to train you.

 

If your parents aren’t thrilled with the idea of you going-it alone, then maybe a family partnership is in the cards. There are also ways for a millennial entrepreneur to fund a business purchase through the Small Business Administration (SBA). Ask a business broker about what opportunities would be available. You might be surprised with what’s possible!

 

If entrepreneurship is for you, there’s no need to saddle yourself with student debt to get there. Talk to a business broker today about your goals for business ownership and the capital you have available – and they will be able to help you decide on the best entrepreneurial path for you.

 

Do you have more questions about how to get funding for the purchase of a business? Would you like to know what a family partnership might look like? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Dishonesty, Procrastination And Red Tape – A Cautionary Lesson For Business Buyers

Posted in Become a Business Owner, Buyers Articles

Published February 25, 2019

 

Buying a business involves a lot of paperwork and red tape – what can sometimes seem like mountains of the stuff.

 

When mired in this sea of required documentation and applications, there can be times when you are tempted to skip a few steps and just bet on not getting caught.

 

This is a HUGE mistake, for a number of reasons.

 

Reason one? It could be considered fraud.

 

If you are filling out those mountains of applications for financing, fudging the paperwork could ultimately land you in very hot water. Lying about anything, even something small, will almost assuredly come up when the lending institution (be it a bank or the Small Business Administration) goes over everything with a fine tooth comb before they write you a check. It would be very bad for their own business if they were in the habit of overlooking items that would otherwise prevent a loan from happening. Cover yourself from fraud charges or denial of funding down the line and be absolutely honest.

 

Reason two? It could mean your licenses get revoked.

 

If you are buying a business that requires some type of licencing, like most do, your applications for those licenses will seem never-ending. Skipping necessary steps, fudging a bit in your answers, procrastinating and missing deadlines or just not applying for the license at all will likely mean you have to close the business doors when you get caught. Licencing agencies get paid to ensure everyone is following the rules, and they have the right to revoke your licenses and close your business if they catch you trying to bend or break those rules. Do yourself and your investment a favor and don’t skimp on your licencing requirements.

 

Reason three? Fines, fines, fines.

 

Even if you manage to escape fraud charges or license revocations, if you get caught or miss an important deadline you will absolutely be slapped with what can quickly add up to debilitating fines. Again, the bankers and agencies you are dealing with have punishments like fines in place to ensure everyone follows the rules. Don’t spend exorbitant amounts of money unnecessarily. Do the paperwork right the first time.

 

We aren’t trying to scare you, we are trying to give you an honest look at what can happen when you think you can bend or break the rules.

 

The paperwork might seem never-ending, but it’s very manageable if you stay on top of it – and every operating business out there got it done.

 

There is also help available if you feel overwhelmed. Ask your business broker for help, or you can hire someone who specializes in licenses for businesses. The message here is do it right so you won’t get caught.

 

Do you have questions about the licensing requirements for the types of businesses you are interested in? Would you like to know more about the services available to help you? Ask us! Please leave questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

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Stand Out! How Business Buyers Can Break From The Pack

Posted in Become a Business Owner, Buyers Articles

Published February 11, 2019

Thinking about buying a business? The best way to go about buying a business of your own is to employ the services of a business broker. If you have already started your business search, you may find that it is difficult to get business brokers to pay attention to you. Why is this?

 

For most business brokers, dealing with buyers is frustrating. Up to 90% of potential buyers who enter the market never buy anything, and a big chunk of that 90% are people who are just kicking tires and have no real desire to ever buy a business.

 

 

If you are among the 10% who really do want to buy, separating yourself from the rest will be critical in getting a deal done.

 

How do you as a buyer get business brokers to take you seriously?

 

Ask questions.

Serious buyers ask great questions, and they ask lots of them. Buying a business is very different from buying a house because you aren’t buying aesthetics and a structure, you are buying cash flow. As such, the physical location and furnishings aren’t really important. Great buyers want to see the books and have conference calls with the owners, they don’t want to go on a walk through.

 

Be ready to answer questions.

Yes, personal financial information is intensely private, but when you are buying a business you are going to have to provide proof of funds and answer lots and lots of questions about your money and your work history – so just be willing and able to answer from the very beginning. Sellers don’t want to reveal proprietary information to potential buyers who haven’t proven they can afford the business and landlords/property managers won’t be willing to negotiate a new lease with buyers who don’t have the appropriate financial means.

 

Be patient.

Your business broker (if they’re a good one) has many clients and many listings to manage, so if they don’t immediately call you back – don’t call 17 times in a row. If you have shown that you are a serious buyer, you are important to your broker and they will work hard to get you the best business for you. Likewise, you also have to understand that business sellers are also small business owners, so you aren’t their top priority – the business is. Your questions will be answered, so be patient.

 

Be flexible.

You might think you really want to buy a bar, when in fact a completely different business would better meet your goals for business ownership. Entering the market with a flexible mindset will be instrumental in getting you the right business. You also need to be flexible with the process of a business transaction – negotiations and appointment requests may not always go your way.

 

If you are ready, willing and able to buy a business – stand out from the rest by asking and answering questions, having patience and being flexible. By showing your broker and sellers that you are serious you will be well on your way to business ownership.

 

Do you have questions about the business transaction process? Are you wondering if the business you think you want to buy is actually the right business for you? Ask us! Please feel free to leave questions or comments here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

No Comments »



Buying A Business? 3 Financing Options

Posted in Become a Business Owner, Buyers Articles

Published February 4, 2019

 

If you are looking at buying a business, you may not have the full amount you would need to make an all-cash offer – so financing options might need to be considered.

 

If I need financing, what options are available? 

 

Traditional Loans

 

You may be thinking that you can just head down to your local bank and take out a loan to help you buy a small business, but this option will probably have to be taken off the list. Traditional lending institutions are very gun-shy about financing small businesses.

 

If you are entering the world of small business ownership you already know that starting a small business is a risky venture. You are trying an unproven product or service in an unproven location with unproven operating methods.

 

Buying an existing small business removes the “unproven” part of the equation – good news for business buyers – but a traditional lending institution is only looking at the risk. For most prospective business buyers, a traditional loan from a traditional lending institution probably isn’t on the table.

 

The Small Business Administration (SBA)

 

Some businesses on the market and some buyers who are considering those businesses will qualify for a loan from the U.S. Small Business Administration – just be aware that because this is a government program it comes with it’s fair share of paperwork and red tape.

 

Both the business and the buyer themselves will have to meet the qualifications necessary, but in some instances this can be a great financing option for those looking to buy a small business. If you would like to know more about financing options from the SBA, click here to visit SBA’s website or click here to contact us with questions about this lending option.

 

Seller Financing

 

Most small business transactions involve this third type of financing, where a buyer puts down a down payment (typically 50% or more) and the seller finances the rest.

 

This is a great financing option for several reasons. A seller who is willing to keep some skin in the game speaks volumes about their confidence in the future of the business – and it gives opportunities to future business owners who may not have been able to find more traditional lending options.

 

If you can’t get a traditional loan, and SBA financing isn’t in the cards – talk to your business broker about the possibility of seller financing and about what businesses on the market are currently offering this type of financing. Want to learn more about how seller financing works? Click here to read Seller Financing: The Business Buyer’s Guide.

 

The opportunity to buy a business can come in many forms. The financing option that suits you best and is available for the business you are interested in will vary – just ask your broker about your options.

 

Do you have questions about how to qualify for a loan from SBA? Would you like to know what currently available businesses are offering seller financing? Please feel free to leave comments and questions here and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

www.InfinityBusinessBrokers.com

No Comments »



Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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