Business Loan - A silly Question...

captainpie_2

hi,

Okay, so this may sound like a stupid question but...

I am looking at buying my first business (scary stuff0 and the cost of this is a very manageable £35,000. The business already exists and has a turnover of around £180k per annumm with huge room for growth.

the problem I have is I have limited funds available as they are all tied up in my house. We have a large sum of equity but as we are in a fixed rate period we can not access it.

What are my options?

Any help with this would be most appreciated

Thanks in Advance

DCFC79

Why is the owner selling or wanting to sell if it makes so much ?

I think you need to get the books/accounts looked at as you could be buying a lemon ?

You might need some collatrel (sp?) to put up to get bansk to lend you the dough.

Need a business plan, business link have some.

Is the turnover figure what you have been told or you have seen proof of it ?

Any experience of running a business as its not all rosey/easy going, can be hard work.

captainpie_2

Turnover is what has been reported. Owners started a family and as such are wanting to step away from the business.

it is a leasehold business and it is exactly what I am looking for lemon or no lemon, it is the perfect opportunity for me.

Was really looking for advice on the best avenue to follow in terms of financing.

Is it possible to set a loan against my current property? or should I sell and use the equity?

DCFC79

captainpie wrote: »

Turnover is what has been reported. Owners started a family and as such are wanting to step away from the business.

it is a leasehold business and it is exactly what I am looking for lemon or no lemon, it is the perfect opportunity for me.

Was really looking for advice on the best avenue to follow in terms of financing.

Is it possible to set a loan against my current property? or should I sell and use the equity?

I cant comment on the finance part but someone more knowledgeable may well reply at some point today.

captainpie_2

thanks for your helps so far.

And with regards to your comment about it being hard work...i really hope it is...would not be worth it otherwise

DCFC79

captainpie wrote: »

And with regards to your comment about it being hard work...i really hope it is...would not be worth it otherwise

Only said it was hard work as there are some poeple out there who think its easy to run a business and go into it thinking its like that and then find out its not all rosey/not a 9 - 5 job 5 days a week sort of thing.

RDG

There is a big difference between turnover and profit and before you get a loan against your house or even sell to get the equity ensure that the business is able to make some returns to pay the money back.

Apples2

As a rule of thumb, business lenders would expect you to stump up 50% of your own money and have some security for their half.