12-31-2011 01:20 AM
Does anyone know how to get a loan for existing businesss?
i am looking to buy a gas station (without property) for 800k.
i only have about 50k cash that i want to keep for 1-2 months worth of operating expenses.
business currently nets close to 300k per year after expenses.
banks wont touch business only and every app i see for sba says i need to be in business for 2+ years with all records.
how do foreigners come here and buy these gas stations? i see just buy them buying one they get certain visa's?
how is this possible?
ps i curretly make 140k at my current profession and have a credit score in mid 700's
thanks for your help
12-31-2011 11:13 AM
There will not be any normal loan available to buy a business worth $800K if you only have $50K cash and don't have lots of other assets. It would get easier if you own real property with $800K+ in equity. I would expect substantial difficulty even with $500K down. It would be much easier if a substantial amount of the business value was real property that can't be removed. A gas station with all the potential for environmental damage will just make things worse.
Common for seller to finance you but even if he wants to do that I would expect substantial conditions unless you have something else you can use as security.
All the foreigner purchased businesses that I have seen in the last few years were bought for cash or partly financed by a foreign bank.
12-31-2011 06:47 PM
With SBA don't they want to see current business open 2 years, not that you own the gas station for 2 years before they will give you money...
They will use business income and expenses to approve for you to purchase I thought... but Im thinking 20% is going to be needed down like a regular house no?
12-31-2011 11:13 PM
i understand conventional financing is not an option.
i am looking for unconventional financing. i know its out there.
i am already a part of prosper (peer to peer lending)
but you cant borrow that type of money there.
angel investors, usually invest millions and this is too small for them, plus they want 3 to 4 times return on investments.
there has to be some other types of clubs where i can get 800 investors to invest 1,000 each?
anything like that available?