Hi all,
I am a longtime Somersoft lurker but very infrequent poster! I have a few questions around obtaining a bank loan to fund the purchase of an existing business – not sure where to start with this or who at a bank (pr perhaps a broker?) I should be talking to. You may be wondering why I am posting this on a property investment forum? Well I'm just struggling to find relevant info and so thought that with the wealth of investment knowledge on here that someone may be able to assist. Have posted this in the Coffee Lounge as I'm assuming that as this is not directly property related this is the most appopriate place to post?
I am currently looking at an online business that is for sale – asking price is around $450000 including stock. I have around $200,000 equity in one of my IPs that I would either look to release as equity or perhaps raise by selling the property. So I'd be putting in $225,000 of my own money and looking to a bank to fund the rest (so 50% me, 50% the bank). My questions are as follows:
Thanking you in advance for your assistance!
I am a longtime Somersoft lurker but very infrequent poster! I have a few questions around obtaining a bank loan to fund the purchase of an existing business – not sure where to start with this or who at a bank (pr perhaps a broker?) I should be talking to. You may be wondering why I am posting this on a property investment forum? Well I'm just struggling to find relevant info and so thought that with the wealth of investment knowledge on here that someone may be able to assist. Have posted this in the Coffee Lounge as I'm assuming that as this is not directly property related this is the most appopriate place to post?
I am currently looking at an online business that is for sale – asking price is around $450000 including stock. I have around $200,000 equity in one of my IPs that I would either look to release as equity or perhaps raise by selling the property. So I'd be putting in $225,000 of my own money and looking to a bank to fund the rest (so 50% me, 50% the bank). My questions are as follows:
Is any bank likely to lend me 50% for a small online business (has been running for 7 years)? I understand that it can be easier to get finance for an established business such as a franchise – is it possible to get a loan for a small non-franchised business?
Assuming that a bank will loan me the necessary funds, what would I need to provide to support the loan application?
Who do I contact at a bank to discuss this – or are there brokers that can assist with this? What would the best option be? Which bank should I approach (the most small business friendly)?
Thanking you in advance for your assistance!