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Mongo
8/22/2007, 10:21 PM
Maybe some of you smart financial peeps can help me.

Say there is a small, yet profit making business for sale. The owner wants 4 mil, yet he can be talked down from it to 3-3.5 mil.

With the way the business is running, the loan could be payed off in just over 4 years, probably quicker if some changes were made.

How does one get that kind of loan with out collateral? Is it even possible?
Tiptonsooner
8/22/2007, 11:13 PM
You better have one hell of a financial statement and copies of several years of A/R from said business.
sanantoniosooner
8/22/2007, 11:15 PM
My plan fell through when Anna Nicole bite the big one.
Mongo
8/22/2007, 11:18 PM
My plan fell through when Anna Nicole bite the big one.

she has a daughter, wait 17 years and the plan is still a go
Mongo
8/22/2007, 11:20 PM
You better have one hell of a financial statement and copies of several years of A/R from said business.

The financial records wont be a problem.

What is A/R?:O :confused:
OUinFLA
8/22/2007, 11:36 PM
Accounts Receivable
Taxman71
8/23/2007, 06:54 AM
The lender would want a business valuation report by a business appraiser and still would likely lend only 80% or so of the value. Collateral would likely come from personal assets and guarantors.
Mjcpr
8/23/2007, 08:15 AM
The financial records wont be a problem.

What is A/R?:O :confused:

Sweet jeebus I hope you're not the one buying it.
Taxman71
8/23/2007, 08:49 AM
Make sure you see the secret books the seller keeps at home and not the ones he shows the IRS.
Hamhock
8/23/2007, 09:11 AM
get someone to help you put together a business plan and go to a local bank. you will be required to put up some down as taxman said.

i know several multi-millionaires who started when they mortgaged their house, emptied their retirement, and borrowed from relatives for just this sort of thing.

i know many more who did the same thing, fell on their face, lost everyting (including family), went bankrupt and are now certifiably crazy.
Mongo
8/23/2007, 09:59 AM
Sweet jeebus I hope you're not the one buying it.

whatever pencil pusher.

Do you know why I dont know what A/R is? I have my accountant do all that for me so I dont have to worry about it.

Now I need to go get my accountant lunch, this pregnancy is making her crazy for food;)
Hamhock
8/23/2007, 10:02 AM
whatever pencil pusher.

Do you know why I dont know what A/R is? I have my accountant do all that for me so I dont have to worry about it.

Now I need to go get my accountant lunch, this pregnancy is making her crazy for food;)


and, the business may not even have accounts receivable.


don't worry mongo, i bet you'll be throwing quarters at Pat from your suite very soon.
Mjcpr
8/23/2007, 12:32 PM
Remember, Mongo: Profit = good, Loss = bad

You know, when you're reviewing those Financials and whatnot.

:D
IB4OU2
8/23/2007, 05:06 PM
If you drive a Yukon it'll be a piece of cake....
sanantoniosooner
8/23/2007, 05:10 PM
Don't listen to these carpet biters.
StoopTroup
8/23/2007, 05:50 PM
Threaten them if they start bawking at your proposal...

You know...just to show them how passionate you are about it.