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Money, Business & Finance Ground >> How to get a business loan ????


10/19/12 6:38 PM
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LeftBench
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My wife's boss will be retiring and offered to sell her the business.

We can come up with approximaetly 10-20% of the asking price ourselves but need a loan for the rest. I've been told its next to impossible to get a loan these days from the bank? We don't have much collateral.

I heard the inventory in the store we want to purchase can be used for collateral but that it could very easily complicate things to the point of not being worth it.

My father is a very successful accountant and is helping us as much as possible. He's unable to think of a way for us to get this loan.

Is there any banks out there giving old fashioned loans? Are we missing anything? Thanks for the info. We will be buying the business for $525k and can come up with 50-100k ourselves but will need to borrow the rest.
11/28/12 5:05 PM
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LeftBench
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Well we've decided to back out of this deal. We were unable to get a traditional loan, but did have an investor step up who was willing to invest 500k - 1 million dollars. He wanted a 70/30 cut though. My wife would get an increase in pay, and 30% of the business' profit, but she wasn't interested.

Looks like we are going to focus on starting a family instead.
12/17/12 6:06 PM
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Seth
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LeftBench - Well we've decided to back out of this deal. We were unable to get a traditional loan, but did have an investor step up who was willing to invest 500k - 1 million dollars. He wanted a 70/30 cut though. My wife would get an increase in pay, and 30% of the business' profit, but she wasn't interested.

Looks like we are going to focus on starting a family instead.

So, he was willing to put up all the money, give your wife a raise and 30% of the profit...  and she was not interested?

Sounds like a classic example of not being able to pull the trigger.  The difference between normal people and successful business people is simply having the balls to pull the trigger.

I'm not saying you made the wrong choice, I know almost nothing about the business or the terms.  But I see things like this happen all the time.  People pass up on good opportunities because they are scared to take a risk.

12/17/12 11:19 PM
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LeftBench
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I agree with you. She's not a business person and I think I could have been a huge help (even though I'm not either). But I think she was afraid to pull the trigger, but in the end I'm ok with it because we still make a good living and now we can start a family. Ultimately this was my wifes decision but I'm still working hard to get myself into the upper class. We shall see. Phone Post
12/30/12 11:58 PM
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ShakeNBake
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in
1/3/13 5:44 PM
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LeftBench
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Quick Update:

Her boss came at her with another idea which we are seriously considering. Deal still might be a go, and my wife and I will own about 85% of the company with my little brother owning about 15%.

I'll keep everyone informed... very excited.
1/3/13 6:23 PM
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Seth
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Cool, let me know what you guys decide.


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