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Nairaland Forum / Nairaland / General / Business / Adverts / Small Business Purchase Financing—obtaining Your Down Payment (577 Views)
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Small Business Purchase Financing—obtaining Your Down Payment by adebisi1(m): 2:43pm On Jul 07, 2008 |
Small Business Purchase Financing—Obtaining Your Down Payment Most lenders insist that business buyers/borrowers "have some skin in the game" such as a down payment on a business purchase. Most lenders require anywhere between 10%-30% down on a business purchase depending on the type of business, the deal structure, and the lenders general requirements. All lenders are different and many times their requirements change throughout the year. Below are a few ideas that can be utilized to maximize the amount for a down payment on a business purchase and to obtain financing to complete your deal. Here are a few ideas of where to source possible sources for a down payment: Cash & Savings - An obvious source for a complete or partial down payment. You do not want to utilize your entire pile of cash since lenders will be accessing your "personal liquidity". Lenders do not want you to utilize all your cash on a down payment in case the new business you purchase has a few bad months financially. They want to make sure you have the funds personally to pay your families monthly bills etc. Cash Gifts from Family Members - Many lenders will allow gifts of cash as long as there are "no strings attached" i.e., they are not meant as loans. As long as a letter from the family member providing the funds spells out that the gift is solely for a business purchase and not a loan you should be fine with most lenders and financial institutions. Home Equity - With home equity growing rapidly many buyers utilize these funds to either buy a business or utilize it for a down payment. Before you pull all your funds out of your house for a down payment make sure it won't jeopardize the deal and structure of the deal in case the equity (or partial equity) would be needed to help secure a loan. Partial Owner Financing - Usually the buyer will put down 20% to 50% (utilizing one of the methods included in this article), and the sometimes the owner will carry back a note of between 10% to 50%. Interest rates vary on seller notes but they usually will be higher than banks or commercial resources. Even though the owner takes back a note, the buyer of the business still needs to "inject" a down payment between 10% and 30% of the total purchase price. Retirement Funds/Plans - Many buyers have built up sizeable amounts in their work 401K plans. There is a way to tap this money tax free—put it into a "special trust" that then buys the business for you. Many corporate refuges/individuals coming out of corporate America are going this route. They key to all this is to be creative - possibly tap several of these sources to get your down payment funds together. Keep in mind to start this process early (pre-qualify and arrange for your down payment to be liquid and ready so that when you do find a business to buy and need financing you are ready to go. Do you want to order Electronics e.g (LCD TV , COMPUTER ,Phone) Motor/ Parts, shoe & cloths, or buying other stuff abroad? Place your order and i do the rest. i will get you any stuff you want from abroad and i will follow through to make sure you get the stuff you want. PLACING AN ORDER IS AS EASY AS ONE TWO THREE 1. FIRST SEND ME E-MAIL FOR YOUR ORDER REQUEST TO adebisi12000@yahoo.co.uk 2. Upon receipt of your order, I will inform you when your order will be available 3. You will make 10% Down Payment 4.You Come to my house or store and pick your order with 90% Payment . 5.Finally, just sit back and let me do the rest!!! How it works There are three things that have to be done. You have to tell me what Order you want. I have to tell you if I will get them & how much. You then have to make arrangements for 10% down payment. Cash Only: Pay to my bank account . You then inform me of the arrangements made by e-mail. All of this is accomplished by e-mail. Upon receipt of payment, I will send an e-mail to let you know when you may expect delivery. If you would like more information Send me an e-mail & I will respond within 24 hour if not sooner. if you want my number you can request by mail |
Re: Small Business Purchase Financing—obtaining Your Down Payment by RIan1(m): 3:04pm On Jul 07, 2008 |
Good idea! You do it best. ![]() |
Re: Small Business Purchase Financing—obtaining Your Down Payment by adebisi1(m): 3:20pm On Jul 07, 2008 |
R.IanYa Welcome |
Re: Small Business Purchase Financing—obtaining Your Down Payment by ribadulora(f): 3:42pm On Jul 07, 2008 |
@adebisi u welcome too ![]() |
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