Need a loan to buy a business?

If you are trying to get a loan to buy a business there are a few things you should know. Business loans are not like personal car or mortgage loans. Much more due diligence is involved. Business lenders are also more subjective depending on the size of the loan requested. This means that you will get a more personalized look at your request.

Don’t expect to get 100% financing. You will be expected to put down a minimum of 10%-15%, and up to 30% of the purchase price or project cost. This down payment represents your skin in the game to the lender. Be prepared to come up with this before you take your loan request to a lender.

You also need to have experience in the industry the business you want to buy is a part of. This will tell the lender you are qualified to run and operate the new business. Just because you have an interest in a certain business does not mean that your will be qualified as an expert in it.

Getting money to buy a business is not easy. Take the extra time to get prepared before you visit with a lender. This will increase your chances of getting approved.

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