Finance Questions

Question: Purchasing a Business Finance advise needed?

Could any one give me any information on finance for purchasing a business where you dont have your own home to mortgage against. I plan to continue working full time at my exsiting employment and and wish to buy a houseboat. The housebout will be hired out on a regular basis and is currently already operating very sucessfully and has done so for the past 20 years. Any information would be appreciated.

Answer: You don't always need to own a home to get financing. The leander is going to decide on the worthiness of your purchased based on several factors.
1. Is it a profitable business? The preivious owner should provide you (which you will show the bank) a least the past three years business tax returns and accounting summary (profit/loss statement). If profits show that you could pay back the bank in three years versus thirty years, for example, then it will easy to get the loan.
2. Assests. The bank will have you list all of your assests, both property and liquid assests. You may have enough other property or liquid assests (money in the bank) that home ownership won't be an issue.
3. Your resume, of sorts. If you have proven business ownership and success experience then the bank will be more willing to loan money to you. Your credit score is also part of your "worthiness" so check it first to make sure everything is correct before a lender sees it.
4. Finally, if you don't have any other assests or money in the bank, no business ownership experience, and average credit, things may get tough depending on how much money you need to borrow. You can always consider bringing in a silent business partner. This is someone with the assests to help you get the loan and make the down payment but who you'll have to share profits with, having the option of buying out his portion of the business after things are running smoothly for a few years.

Best wishes.

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