Once a buyer has contacted a Florida Business Broker and found the right business opportunity, unless the Buyer has all the necessary cash, the Buyer may need to secure some additional funding to complete the purchase. By consulting with the Florida Business Brokers at Truforte Business Group a buyer will be able to quickly determine what options might the best suited or available for a particular Florida business for sale. A Buyer may often find that utilizing their own resources is the easiest option for financing the sale but the Top 5 financing options for buying a Florida business include:
An SBA Loan is a bank loan that is guaranteed by the Small Business Administration and the Federal Government. The program allows banks to lend money and much of the risk is then absorbed by the Federal government. For a buyer what makes this loan so attractive is that a buyer is actually able to borrow money from the cash flow of the business and a large portion of the loan does not always need to be collateralized. Since the loan can largely be dependent on the cash flow of the business for a Florida business for sale to qualify for this type of financing a strong history of earnings is usually a must.
For Florida business for sale that are unable to qualify for SBA financing, in some cases Seller financing becomes a more viable option for buying a business in Florida. Unlike an SBA loan where the down payment can be as low as 20% of the sales price, a Seller will typically be looking for at least 50% down if not more. For the Buyer, Seller financing can be an excellent option, although many Sellers can be hesitant to offer financing because the risk they are assuming and many find not having the full asking price upfront will not allow them to reach their financial goals.
Home Equity Loan
Although buying a business in Florida with a home equity loan is not nearly as popular as it once was, for some Buyers it can still be an excellent option. With the collapse of the housing market many banks tightened up on the home equity lines, and many homeowners found themselves with little or no equity. Despite the recent situations there are Buyers who can find a way to buy a Florida business using a home equity loan.
Buying a Business with 401K Money
Purchasing a Florida business with money from a 401K plan is another excellent way to buy a Florida business. There are companies that specialize in setting up the proper structure where the 401K money is rolled into a new 401K plan that then actually owns the purchased business. A Buyer will want it be sure to consult with their attorney or accountant as well as work with someone who is experienced in how this process works.
Borrow From Family
For yet many other Buyers, the best path to buying a Florida business could mean tapping on the shoulder of that well to do relative. For some Florida business Buyer’s that rich uncle is not a myth, but in fact a reality. For such fortunate individuals, this can be a great way to secure a business loan from a confident investor at a reasonable interest rate. When buying a Florida business for sale, Buyers sometimes need to get creative on finding the best financing options. Every situation is different and for some Buyers a combination of financing options may be what is required to get the deal done. Whatever the case, a great place to get started is by contacting a Florida Business Broker and searching for a Business for sale.