You have been looking for 6 to 12 months now and you have found the business you want to take the next step and make an offer on. However, before you can make an offer you need to ensure you can borrow the funds to acquire the business. This is when time cannot move quick enough for you, as in your mind you are ready to make the offer, but without finance you are no closer than when you first started looking to buy a business.
It is important business buyers are aware that when an offer is made on a business it is never subject to finance. The main reason for this is obtaining business finance is much more difficult than residential finance and can take some time to be approved. As a business broker, I have seen some buyers take up to 2 months to obtain business finance. They never got to make an offer on the business as it was sold before they could even get finance approved.
So why does it take so long for business finance? Part of the reason, in simple terms, is a two step process. Step 1 is looking at you as a business buyer and understanding what you own, your current debt situation, your commitments going forward and income streams. Step 2 is looking at the business you are going to buy.
If you are serious about buying a business and while you are looking, why not begin at Step 1? Items like residential valuations, applications completed, meeting with your bank, obtaining and supplying supporting documentation all take some time to be prepared and reviewed. Obtaining the finance can be a stressful part to the process of buying a business so if you want to make it easier on you and your bank, start the conversation now rather than when the opportunity appears.
COCKTAIL BAR, LIVE DJ’S AND NATIONAL AWARDS
When it comes to live DJ performances, known for its high skilled staff and quality cocktails all in a safe and relaxed environment – this bar would haveto be number one in Canberra. Supporting this, this bar won two national awards for 2011 and 2012.
Turnover 2012 $789,000 | 2013 looks very similar GP 74% | Price $320,000 + SAV
LARGE ASIAN SUPERMARKET NORTHSIDEPrice $290,000 + SAV
NORTHSIDE MECHANIC WORKSHOP
Very strong mechanic business that has been in Canberra for over 30 years. This business is always booked out in advance and 90% of work undertaken is on two main prestige vehicle brands as this is what the business is well known for in Canberra and interstate.
Turnover 2013 $1.1m | Owners return over $350k Price $260,000 + SAV
BRINDABELLA BUSINESS BROKERS BUYERS LIST
For the 2013 fi nancial year we have sold over $1m in businesses that the open market was not made aware of. These were sold to buyers on our buyers list who received the details and were able negotiate the purchase without the open market being aware. If you are interested you can join our buyers list by:
1) Going to www.bbbrokers.com.au
2) Click on the Subscribe tab
3) Complete your details and click Submit