Getting Financing for Your Business
So you have decided that you want to be your own boss, and you are ready to assume the risks of owning a business. Certainly the risks are real; a large percentage of businesses fail. Your risks may be mitigated to some degree by purchasing an existing business with a good track record. You may be unsure about where to find a business loan and how to proceed in securing the capital you need for your business purchase and working capital. Empire Business Brokers can help you find the capital that you need.
Below are some options to consider when purchasing a business:
- Selling Personal Assets: When I started my first business we sold a car and liquidated our savings.
- A Second Mortgage on Your Home Equity: Over time your home may have equity available to secure a second mortgage.
- Loans or Guarantees from Relatives: You may have a relative that would be willing to provide a loan so that you may start your business. One of the businesses I started involved a guarantee from a relative; he allow a second mortgage to be placed on his home to guarantee a bank loan.
- Business Partner(s): It is rare when a business owner has all the skills necessary to own a business. You will either have to hire employees or bring on partners with different skill sets and financial assets in order to start a business.
- SBA Financing: The Small Business Administration understands that small businesses are the engine of our economy and therefore the SBA provides government backing to banks that lend to businesses. The bank will underwrite the loan with a partial guarantee from the SBA.
- Bank Financing: If you have a solid track record, and are willing to personally guarantee a bank loan, this may be a good option for you.
- Seller Financing: In some cases a business seller will finance a loan to a trusted buyer.
- Private Investors: If you are willing to give up equity in your business a private investor or investor group could be an option for you.
- Private Equity: Private Equity Groups actively buy businesses that they build and sell. In some cases they want the founder of the business to remain involved with an equity stake after the sale.
We work with a number of lenders and other sources of capital for business acquisition and/or expansion. Contact us at 864-241-0606 to learn more.
For more information, contact us today: 864-241-0606 or click here to email us