Finance for buying a business
Discussion
You can start with your bank. If you have a business plan and the business you want to buy shows reasonable accounts for the past three years they may be very interested. Cash flow (rather than profit) is the key issue.
However, they don't take risk so may want security - like your house. Try to keep this security to the business you are buying.
You can go to venture capital but they want a stake in the capital of the business. I never met anyone happy with their VC once the business takes off - they are expensive to get out.
However, they don't take risk so may want security - like your house. Try to keep this security to the business you are buying.
You can go to venture capital but they want a stake in the capital of the business. I never met anyone happy with their VC once the business takes off - they are expensive to get out.
Cheers, have thought about VC and was thinking how it would work for me, but i would prefer to try to keep myself independant if i can.
Been looking at a few banks online and they all seem to do a maximum of 75%, i could use some equity from my home but i havent got quite enough to cover the approx costs i'm looking at
This may not be for a few years yet but i cant see my current working position improving and rumours of us moving doesnt make me feel any happier in the work i do.
Mike
Been looking at a few banks online and they all seem to do a maximum of 75%, i could use some equity from my home but i havent got quite enough to cover the approx costs i'm looking at
This may not be for a few years yet but i cant see my current working position improving and rumours of us moving doesnt make me feel any happier in the work i do.
Mike
Came up against a slightly different problem when buying the latest business. The banks said we were up to the maximium they would lend, so we approached a finance house, who arranged several smaller loans to cover the cost, nightmare of paper work, but managed to acquire funds to buy business.
Business now making money, banks said they would have lent, even after refusing us twice.
Business now making money, banks said they would have lent, even after refusing us twice.
Also, as a very rough rule of thumb, most VC's will not look at investing amounts below £1m, some look to a minimum of around £3m.
If it is a high tech business, or based in an designated re-devlopment zone there are a whole host of funds available via grants and loan schemes either with the UK or European government. As far as I know, most of these would require you to be either doing a mangement buy-out or to be setting the company up from nothing. Could be wrong on this though.
Well worth having a chat with your local business link about this though, I found them to be very helpful.
If it is a high tech business, or based in an designated re-devlopment zone there are a whole host of funds available via grants and loan schemes either with the UK or European government. As far as I know, most of these would require you to be either doing a mangement buy-out or to be setting the company up from nothing. Could be wrong on this though.
Well worth having a chat with your local business link about this though, I found them to be very helpful.
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