financing commercial property with low deposit

Viewing 4 posts - 1 through 4 (of 4 total)

Karen and June
Participant
@karen-and-june
Join Date: 2012
Post Count: 8
November 7, 2014 - 7:48 am
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?
PHP
Participant
@php
Join Date: 2014
Post Count: 111
November 7, 2014 - 9:16 am
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!
- This reply was modified 10 years, 1 month ago by PHP.
PHP | Mortgage Station Pty Ltd
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
November 7, 2014 - 5:37 pm
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
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BuyersAgent
Participant
@knightm
Join Date: 2005
Post Count: 338
November 9, 2014 - 7:48 am
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
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