If you are a cash buyer - great - If not most major banks work thru the SBA business loan program.
If you need to finance a portion of the purchase price of the business sale consider working with a bank that is affiliated with the Small Business Administration “SBA”. You will need about 20% of the purchase price as a down payment on the business being purchased; and if you are purchasing both the business and real estate together you will need about 20% down payment for both - as the SBA considers this a “blended loan”. In this case repayment terms can then stretch out up to 20-25 years, versus 7-10 years for “business only” financing. The SBA helps in purchasing a business.
Financial institutions (albeit banks, credit unions, non-bank lenders), will loan about 75-90% of the total purchase price of non-real estate business assets being purchased, and about 90% of real estate when the real estate is part of a business purchase.
Most financial institutions make business loans through the SBA and the SBA bank loan guarantee program. A number of SBA approved financial institutions offer “express loan service”, which in many cases can provide for a loan approval process in one week – once all paperwork has been received. There are different types of SBA Loans available.
When SBA loan programs are utilized, the SBA may ask the seller of the business to assume some portion of the loan risk by financing a percentage of the purchase price.
Hartford Business Brokers helps in arranging the financing needed to complete the business sale that we are brokering at no additional charge to the seller or the buyer. Call us today to discuss your particular situation. Sometimes it helps to get out in front of a business purchase by exploring the financing options.
Call Hartford Business Brokers today at (860) 674-1791 our phone lines are live 24/7 leave us a voice mail and we will return your phone call promptly. Our conversations are confidential.
