How-To Buy An Existing Business: Royalty Financing

Got a product that will bring in the bucks? Use it to get a loan based on your future sales. Definition or Explanation: Royalty financing is an advance against future product or service sales. The advance is paid back by diverting a percentage of the product or service sales to the investor who issued the…read more

#ZeroDown Business Alert: Convenience Store. Only $14,000 Out Of Pocket, Financing Available!

Convenience Store. Only $14,000 Out Of Pocket, Financing Available! Chesapeake, VA (Chesapeake City County) Seller Financing Available Asking Price:$40,000 Cash Flow:N/A Gross Revenue:$179,480 EBITDA:N/A FF&E:N/A Inventory:$10,000 Rate/Sq. Ft.:$4,453.07 Established:2013 Convenience Store. Only $14,000 Out Of Pocket, Financing Available! Business Description Convenience Store. Only $14K Out Of Pocket, Financing Available! The shopping mall is where Street…read more

How-To Buy An Existing Business: 504 Loans

If you’re buying a fixed-asset like land, buildings or long-term equipment, look into a 504 loan. What It Is: Established in 1986, the 504 Loan Program provides long-term, fixed-rate financing for major fixed assets, such as real estate, facilities construction or expansion, or other fixed-asset needs. 504 loans are made through Certified Development Companies (CDCs)….read more

How-To, Buy an Existing Business: Private Loan Guarantees

You’re early stage, the bank is ignoring your pleas–what do you do? Find an investor to guarantee your loan. Definition or Explanation: A guarantee of payment that stands behind an early-stage company and enables it to take out a loan from a bank. Conceptually, private guarantees play the same role as an SBA loan guarantee….read more

How-To, Buy An Existing Business: SBA-Guaranteed Loans

The SBA’s got your back. With an SBA-guaranteed loan, they’ll guarantee as much as 80 percent of the principle. What It Is: Term loans from a bank or commercial lending institution of up to 10 years, with the Small Business Administration (SBA) guaranteeing as much as 80 percent of the loan principal. Appropriate for: Established…read more

How-To, Buy An Existing Business: Bank-Term Loans

Go with old reliable and get a business loan from the bank. Definition or Explanation:Term loans are the basic vanilla commercial loan. They typically carry fixed interest rates, and monthly or quarterly repayment schedules and include a set maturity date. Bankers tend to classify term loans into two categories: Intermediate-term loans: Usually running less than…read more

How-To — Buy an Existing Business: Asset-Based Loans

Use your assets — like accounts receivable and inventory — -to help you land funding. What It Is: Asset-based loans are usually from commercial finance companies (as opposed to banks) that are offered on a revolving basis and collateralized by a company’s assets, specifically accounts receivable and inventory. Appropriate for: Companies that may be rapidly growing, highly leveraged, in…read more