I don't know if Entrepreneur Magazine had another one of their "more than optimistic small business" articles on financing - you know the one "Buy A Business With No Money Down" type of article, but we are getting a rush of calls from the would be self-employed/business owner EXPECTING to get a low interest SBA loan with no money down.
For some reason business buyers/borrowers feel they should be able to get a SBA loan with no down payment - that's not the way lenders work with SBA loans. They want to make sure you have some "skin' in the game and you should if they are lending you money to buy a business.
Lenders are not venture capitalists, and they are not going to take an equity portion of your new venture expecting a 70%+ share of your small business. They just want to make sure the business you are buying is sound and you will be able to make the payments on your loan!
Face it if you want to buy a business, you are going to need to put down 20%+ down on the purchase price. You also can't utilize credit/loans for the down payment - that means you can't use the plastic (credit cards) for the down payment.
So please no more calls about "I want to buy a business and heard you can get an SBA loan to buy a business WITH NO MONEY DOWN"!
For More articles & information on SBA loans for business purchases go to:
www.BizBuyFinancing.com•
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