All Topics / Help Needed! / Vendor Finance needed for business / house W.A
Seeking vendor finance to start up a small business in W.A under $100 000. Own 2 properties (well myself and the bank), leased out with decent returns and good tenants. Bank values reduced equity borrowings and they require 100% of the business purcahse price, which naturally reduced my borrowing capacity by around $30 000. Very long term stable work history and viable business trying to purchase.
Sick of working as nurse and breaking my back, need to get into[thumbsupanim] own small business.
If you are interested, please contact me. After a Win-win situation. I can use my 2 properties as security.JUST CLEARING THINGSUP A LITTLE HERE.
I did call my banks business loan centre and briefly had a chat to them – (one of big ones) and they briefly went through my current 2 properties and the loans out standing and equity and the tenants etc.
I very briefly told them what I was after (business loans) for long established business of 20 years with figures showing $60 000 Nett Profit per year etc. – they said they don’t look at the business too much they initially look at the operators / borrowers initially and mostly need 100% equity security over the business – I asked again and he said
If the purchase price of the business is say $100 000 – equity for security in homes needed is $100 000 equity – I fall short.
My estimated equity is around $111 000 but they will chop off at least 20% of value which reduces to around $88 or there about.I didn’t realize they don’t use the business viability to cover the repayments and also needed 100% security.
I realize the request is a little out there – but what I am asking if someone (investor) buys the business (not the building) for say $100 000 and they become the vendor and we buy it through them vendor finance with the option of paying out within say 4 years or whatever. The finer details we can work out later but this is my theory of a win-win situation? Naturally we can use our residential properties as security and also we need to go into figures completely etc.
The actual business we can go into later just putting out the feelers to see if anyone is willing to consider or negotiate here?Many thanks
Hi,
Sounds interesting, can you explain further what is your business, what is the product, what is the market?
Cheers
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