Business loan to buy

Jakejdg

Hi

I was wondering if someone could give me a bit of advise.

I am looking to buy an existing care business and i'm not sure how i would go about this or what i need.
I'm no stranger to loans but i have never missed a payment on anything and i bought my own house last year and got a mortgage easy.

Anyway, now i'm looking to buy a business i have no savings due to the house and i was wondering if it's possible to have a loan that is secured against the business that i don't even have yet (Kind of like a mortgage).

any help or advise would be greatly appreciated.

many thanks
Jake

[Deleted User]

You'd put together a business plan and head off to a bank or two.

However, they'll be expecting you to put in a big chunk of your own money, rather than just theirs.

Arleen

This wouldn't be a business loan, but a personal one to buy a business.
And no, you are not going to get one without previous business experience and a substantial chunk of your money.

DCFC79

Jakejdg wrote: »

Hi

I was wondering if someone could give me a bit of advise.

I am looking to buy an existing care business and i'm not sure how i would go about this or what i need.
I'm no stranger to loans but i have never missed a payment on anything and i bought my own house last year and got a mortgage easy.

Anyway, now i'm looking to buy a business i have no savings due to the house and i was wondering if it's possible to have a loan that is secured against the business that i don't even have yet (Kind of like a mortgage).

any help or advise would be greatly appreciated.

many thanks
Jake

Why a care business ?

How much is it going to cost you or how much is it for sale for ?

Sell the house and use the money to buy the business.

jonesMUFCforever

Arleen wrote: »

This wouldn't be a business loan, but a personal one to buy a business.
And no, you are not going to get one without previous business experience and a substantial chunk of your money.

This will not happen - period.
Personal loans are not allowed to purchase businesses.

How much is this care home going for?

I hear almost weekly that homes are closing due to this and that new regulations and the fact that they cannot make money out of them.

From what the OP has written I think this is a non starter.

BrassicWoman

why would someone lend more to you that you are able to invest yourself? Their risk should be lower than yours, not higher

Brock_and_Roll

Just spent the last 3 years trying to sell family care home business.


Almost impossible for buyers to get bank finance at the moment - and given the rate that independent homes are closing this is hardly surprising.


To have any chance, you would need to be putting in at least 20% of the purchase price, there would have to be at least 3 years decent trading figures and the buying would need to be qualified and have years of experience in the sector.


Unfortunately, the prices paid by local authorities to place residents have been cut/frozen for many years and it is almost impossible for small homes to provide a decent level of 24hr care for this price.


If things continue, within the next decade we will only have large home group operators with economies of scale and a few high-end private homes for those wealthy residents who want and are able to pay for enhanced facilities etc.