Business loan question
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?
You better have one hell of a financial statement and copies of several years of A/R from said business.
My plan fell through when Anna Nicole bite the big one.
she has a daughter, wait 17 years and the plan is still a goOriginally Posted by sanantoniosooner
The financial records wont be a problem.
What is A/R?
Accounts Receivable
An Education is what you get when you Read the Instructions,
Experience is what you get if you don't...
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.
Sweet jeebus I hope you're not the one buying it.The financial records wont be a problem.
What is A/R?
Make sure you see the secret books the seller keeps at home and not the ones he shows the IRS.
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.
heh.
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
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.
heh.
Remember, Mongo: Profit = good, Loss = bad
You know, when you're reviewing those Financials and whatnot.
If you drive a Yukon it'll be a piece of cake....
Don't listen to these carpet biters.
Threaten them if they start bawking at your proposal...
You know...just to show them how passionate you are about it.
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