Fullerton Commercial Business Sales

How Buyers Finance the Purchase of a Business

Commercial business sales Fullerton are pretty common today. They help entrepreneurs satisfy the beautiful dream of business ownership. Even so, due to the lack of funds, some entrepreneurial dreams remain to be just dreams. At So-Cal Business Brokers, our mission is to make business ownership a possibility. One of the ways we help with this is by offering numerous financing options. Here are the four main options we provide to facilitate the quick sale of a business.

Some of the clients who come to you already have the cash needed to buy a business. All they need is favorable terms in order to close the deal. Such buyers simply withdraw the money they have saved up and finance the purchase. Others will withdraw from their 401K. The option of cash payment in commercial business sales Fullerton make it easier and faster for you to sell your business. As a result of this, we give priority to buyers who have the required cash in hand. Those who use HELOC (Home Equity Line of Credit) are also top on our list provided they can raise the full amount.

Bank financing
Here the conventional loan options are used. The SBA loan is very popular in commercial business sales. SBA loans are loans guaranteed by the Small Business Administration. Our job at So-Cal Business Broker is to make sure the buyer can get the loan needed to finance the deal before qualifying him or her. Buyers using SBA loans also need to raise a down payment of 10%. This is something we look for when prescreening buyers.

Seller financing
This is a popular option for entrepreneurs whose exit plan was to sell their business. It is similar to bank loans only that you the seller will be giving the loan to your buyer. Our team will ensure the buyer raises at least 50% of the purchase price to pay as down payment. We then develop a repayment schedule that the buyer can manage and also add an interest rate. The best thing about seller financing is that it will help you earn more than you would when selling using any of the aforementioned payment options. On the downside, you will have to remain involved in the business and if the business fails you might fail to get the full payment.

A buyer may make private agreements between him and investors. Investors can be their friends or family members. Our job at So-Cal Business Brokers in commercial business sales Fullerton is to ensure the investors have the money to finance the acquisition. This is done in the buyer prescreening stage.

Do you need more information on how buyers pay for the purchase of a business? Visit our website or contact us to schedule a free consultation. We are here to help.

Commercial business sales Fullerton