Once you have decided on the type of business you wish to buy, you may want to consider the various sources of finance available to you. We would normally advise that you have researched the financing you may require or that is available to you prior to your business search. This saves a lot of time and puts the buyer in a stronger position once an offer is made for a business.
From experience we find that lenders are more open to lending money to people looking to acquire an existing business that possesses a successful trading history. Also there are now also a number of government initiatives to boost small business lending.
Many buyers will be cash buyers of course but some buyers will look to borrow money from lenders to help fund the purchase. Typically lenders will contribute 50% to 70% of the total selling price, with the remaining balance expected to be completed in cash by the buyer.
In order to successfully secure a loan from a lender to finance the purchase of a business you will need to prepare a comprehensive business plan detailing information about the business you are looking to purchase as well as information about your experience, skills and your own financial history. You will also have to have evidence of your cash deposit/input.
Business Sales Plus have access to a range of lenders who they can introduce to you with whom they have a good working relationship with.