Finance Advice For New Venture Needed.

[Seahawk]

Hi All
I'm hoping one of you clever people may be able to point me in the right direction regarding a new venture I have my eyes on.
There is a profitable business for sale that I am very interested in buying. Problem is of course getting the capital together. Banks are very reluntant in the present climate to even consider a business loan. The business in question is on the market for £185k. I have an established business already which I have recently put on the market for £57k. I also have a second home worth about £100k which has no mortgage attached to it, where I have tenents living and never missing a monthly payment (they have intimated that they will probably want to buy from me in the next 12 months).
So there is my dilema. A business I really fancy but can't afford and capital tied up.
Hope someone out there can come up with a magic wand type solution.
Thanks :|

[MarkTaylor1968]

There's potentially a lot of support out there but you need to do your research. The following site is a good place to start... http://www.sie.ac.uk/resources_businesslinks.aspx

...also, check out 'Small Firms Loan Guarantee' - this is delivered through the banks but government backed. You need a good business plan and some persistence though.

Good luck with it,

Mark.

ps. Also consider Private Investors / Business Angels - some don't know what to do with their cash in the current climate!

[Maslins]

Would the vendor of the current business be expecting full cash up front?

Could you not offer something along the lines of paying half up front, 25% at the end of year 1 and 25% at the end of year 2, with some kind of clause that the instalments are based on profits post acquisition?

With this you would still be committed to a purchase though, but may buy you a bit of time (so you may have sold second house & benefitted from further profits from your businesses).

[Gillie]

...also, check out 'Small Firms Loan Guarantee' - this is delivered through the banks but government backed. You need a good business plan and some persistence though.



The whole point of the recent government fund package and the SFLG is that they are designed for people with no security to enable them to get finance, therefore this particular gent in his aim to gain funds would be asked to secure the loans.

The new funding is offered when 'normal' secured funding is not a viable alternative.

As regards your potential purchase, firstly is it definite that you will have to purchase outright and possibly not buy it in staged payments?

Secondly if you have a property that has no mortgage on it, and if you are willing, that could be offered as security against a potential loan.

I take it you have gone through the figures of the new business plus your existing one to show that you have affordability, ie can afford repayments plus still retain enough to pay yourself as well?

[Moneyman]

SFLG are dead at the momenet and new money via Gordons latest weeze is not exactly flowing....You wouldnt get it for buying a company anyway. It is also very difficult to sell any company at the moment. Some form of payment on results would be about the only way.

if you drop me a line on info at amvc co uk. i might be able to help.

[Seahawk]

Thanks moneyman! I will be in touch very soon.