For many people, it makes more sense to purchase an already existing business than to start from scratch. The business model has already been proven, suppliers and partners have already been identified, and an experienced team is already prepped. The only question left is: how to finance the purchase?
Bank loans are often what most people think of first when they look into purchasing a business. However, these types of loans can be very tricky to get because they require certain credit scores, provable history, and enough assets.
SBA loans are provided through banks but often offer a greater shot at getting approved because the government backs them. Extra benefits include good interest rates, longer repayment options, and even counseling for your business.
Financing on Your Own
This option is obviously dependable on your own savings and how comfortable you feel completely financing the purchase of a business yourself. While most people won’t be able to do this, those that can are able to save themselves from racking up debt and contracts to gain the business. On the other hand, depleting your savings can make it very stressful when the business doesn’t do as well as expected.
While there are many more financing options than the ones mentioned above, the choice is completely up to you. Balancing the pros and cons of each option, as well as understanding what would align the best with the business will determine the right choice. If you have decided to purchase a business and are looking for what options you have, contact us today!