A business acquisition loan is one of the best ways to enter into a business if you have the funds. Business acquisition loans are a very fast way to get into a business while dramatically reducing the risks of owning a business. After all, with the proper due diligence, you should know all the pluses and minuses of a business before acquiring it. Compare that to starting a business from scratch and really there is no comparison, after all when starting a business, you have a completely unknown situation not to mention variables (risks) you may not even think about. So, while starting a business from scratch, if successful (and that’s a big If) can be more lucrative, those potential financial gains come at a significant risk.
Let’s talk a minute about just some of the risks of starting a business vs. buying an existing business. Here are a few: 1) Taking significantly more time to get up and running not to mention profitable, 2) Hiring, training and keeping good employees, 3) Overestimating the potential for sales and profits, 4) Underestimating the response from your competitors, 5) Underestimating the amount of capital necessary to get the business in the black including working capital (inventory and accounts receivables) as well as fixed assets such as equipment and furniture and fixtures, 5) Being unaware of new technologies that could dramatically affect the business, although this is a risk for a business acquisition but to a lesser degree and 6) Underestimating the difficulty to acquire sufficient financing.
Speaking of financing, acquiring financing to purchase an existing business is far easier and less costly than securing financing for a startup business. It’s all about risk. That’s where our business acquisition financing comes in the picture. A loan to acquire a business is one of our specialties. And our business acquisition loan program covers most businesses. Call us 7 days a week at 828-380-5422 to see if the business you want to acquire qualifies (and we do loans nationwide). Our loans go from $500,000 to $5,000,000. Once we receive your initial paperwork, we can usually close in under 30 days.