I have the opportunity to acquire a small business but with limited funds.
the owner is keen to sell but we need to find a way to do a deal. our solicitor advises us that you cannot lease a business, only the buildings. we have enough to buy the stock. can anyone help us find out how to do vendor financing on commercial property?Hi Karen and June,
If you can post more details about the deal then that would be great so others here can say their opinion about it and you can decide what is the best way for you moving forward.
Have you tried calling your banker or finance person about this? I’m sure they can offer you some advice with this.
Cheers!
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This reply was modified 10 years ago by
PHP.
PHP | Mortgage Station Pty Ltd
http://www.mortgagestation.com.au
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You get the vendor to lend you 30% and borrow the remaining 70% from a lender. Not easy to do these days.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have heard of cases where business owners financed as much as 90% of the sale of their business to the purchaser via vendor finance but these didn’t involve property assets. Its quite common to use business profits over a few yrs to pay out the balance of any vendor finance on a business purchase loan. They would need to get the business valued, including real estate, stock, and other business value. Then you need to work out which parts can be financed and how.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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