What About Financing a Business for Sale in Delaware, Chester or Montgomery County?
Buying a business, as opposed to starting one, has advantages - customers, employees, market position and established systems. Therefore more favorable financing terms are available to the buyer of an established business. Seller financing, bank financing and even the financing by vendors (suppliers) is often available.
Along with the buyer, the seller, banker and vendor become partners in the business, sharing some of the risk. Every creditor feels more secure with an established entity and most banks don't finance new start-ups at all. For going businesses, seller financing at below-market rates is common and available without the same security requirements as other arms-length lenders.
A buyer of a going concern often has immediate cash flow. In fact, in most cases, that's what has been carefully protected by the financing partners: the seller, the bank and vendors. These lenders will only agree to participate in transactions that make sense to them. They know they won't get paid unless the cash flow works for the new business owner.
In a new start-up, the vendors will usually still help, but the buyer must fund the start-up for months and sometimes even years until the business gets going. Most start-ups fail, in fact, because they run out of money before they succeed.
The Business Exchange Network can show you many options for financing the purchase of a business. Call us at 610-353-8244 or fill out our request information form. A Business Exchange Network professional is standing by to serve you.