Buying a business financing options

Cost of buying a business - You have purchased the business, you might also be able to tap other sources of capital like factoring companies, which will lend you money against your ar, or even leasing companies which might be willing to buy any equipment you own and lease it back to you, which would generate an infusion of cash for the business. Thinking about landing financing, also consider what you will bring to the table as collateral -- something that might need to be as high as 50 to 70 percent of the selling price for any kind of debt financing, says art concha, senior vice president of americas united bank, a commercial lender in los angeles. Their approach could come in handy for many would-be buyers, given that 33% of deals now take place when owners are retiring, according to the 3rd quarter 2014 market pulse survey published by the international business brokers association (ibba), m&a source and the pepperdine private capital market project. Most folks, many of whom might have turned to things like a home equity loan in the past to finance their acquisitions, figure they can't land the necessary financing these days given the collapse of the housing market and the tightening of the credit market.

SBA Loans and Financing Options to Buy a Business

You can finance the purchase of an existing business through financing of accounts receivable and SBA loans. Some businesses ...