Buy a Business
You’ve been working at a business for 15 years and the owner is ready to retire and sell. Being a key employee you know everything there is to know about the business from operations, to financials, to key customers and key suppliers. You can do this.
You talk to the owner about purchasing the business and he can’t be more excited knowing that the business will be in good hands. The owner takes you to the bank that he’s had an account with for 30 years to help you get the financing necessary to purchase.
But the banks declined your loan application because they won’t finance goodwill. Wait….What? The business has been around for 30 years, name recognition is apparent, there’s a loyal customer base, there’s value there.
Not to worry. The banks will typically not lend against unsecured money. The good news is that they are supportive of entrepreneurial activity and will refer you to Community Futures Strathcona.
We have over 30 years of experience finding financing solutions for the purchase of a business. We understand sellers want some of the ‘sweat equity’ returned and we understand buyers are prepared to recognize the goodwill. We can work with the banks to close the sale by having the bank finance the tangible assets and Community Futures Strathcona finance the goodwill because we are capable of considering offsets in the strength of debt service and personal assets. As well, if the purchase is for $150,000 or less we can look at financing the whole amount.
If you’re planning to purchase a small business in the Comox Valley or Strathcona Regional District and you’re unable to obtain financing from a bank or credit union please fill out the loan application below or call us today! We can help with the purchase.