Friday, June 13, 2014

Best Financing Options for Buying a Florida Business

Once a buyer has contacted a Florida Business Broker and found the right business opportunity, unless the Buyer has all the necessary cash, the Buyer may need to secure some additional funding to complete the purchase. By consulting with the Florida Business Brokers at Truforte Business Group a buyer will be able to quickly determine what options might the best suited or available for a particular Florida business for sale. A Buyer may often find that utilizing their own resources is the easiest option for financing the sale but the Top 5 financing options for buying a Florida business include:

SBA Loan
Financing options for buying a Florida Business

An SBA Loan is a bank loan that is guaranteed by the Small Business Administration and the Federal Government. The program allows banks to lend money and much of the risk is then absorbed by the Federal government. For a buyer what makes this loan so attractive is that a buyer is actually able to borrow money from the cash flow of the business and a large portion of the loan does not always need to be collateralized. Since the loan can largely be dependent on the cash flow of the business for a Florida business for sale to qualify for this type of financing a strong history of earnings is usually a must.

Seller Financing

For Florida business for sale that are unable to qualify for SBA financing, in some cases Seller financing becomes a more viable option for buying a business in Florida. Unlike an SBA loan where the down payment can be as low as 20% of the sales price, a Seller will typically be looking for at least 50% down if not more. For the Buyer, Seller financing can be an excellent option, although many Sellers can be hesitant to offer financing because the risk they are assuming and many find not having the full asking price upfront will not allow them to reach their financial goals.

Home Equity Loan

Although buying a business in Florida with a home equity loan is not nearly as popular as it once was, for some Buyers it can still be an excellent option. With the collapse of the housing market many banks tightened up on the home equity lines, and many homeowners found themselves with little or no equity. Despite the recent situations there are Buyers who can find a way to buy a Florida business using a home equity loan.

Buying a Business with 401K Money

Purchasing a Florida business with money from a 401K plan is another excellent way to buy a Florida business. There are companies that specialize in setting up the proper structure where the 401K money is rolled into a new 401K plan that then actually owns the purchased business. A Buyer will want it be sure to consult with their attorney or accountant as well as work with someone who is experienced in how this process works.

Borrow From Family

For yet many other Buyers, the best path to buying a Florida business could mean tapping on the shoulder of that well to do relative. For some Florida business Buyer’s that rich uncle is not a myth, but in fact a reality. For such fortunate individuals, this can be a great way to secure a business loan from a confident investor at a reasonable interest rate.

When buying a Florida business for sale, Buyers sometimes need to get creative on finding the best financing options. Every situation is different and for some Buyers a combination of financing options may be what is required to get the deal done. Whatever the case, a great place to get started is by contacting a Florida Business Broker and searching for a Florida Business for sale.

Monday, June 2, 2014

How to Start Your Own Business

Starting your own business is a classic American experience, a quintessential part of the American dream that encourages you to build your own success from the ground up. But even if you have a
great business idea, it's not always clear how you should go about implementing it. How do you begin? You aren't alone in asking this question; potential business owners across the United States are wondering how to start a business. And unfortunately, many of them will never learn the answer, since an estimated 90% of individuals trying to buy a business in the United States never complete the transaction.

But if you don't want to become a statistic, there are options available that can assist you in buying a business. One such option is hiring a business broker. But what is a business broker? For many, a business broker is a saving grace for those wondering how to start a business. People in this profession are able to do this by helping to create an open line of communication between their client and an individual with a small business for sale. In many cases, this is facilitated by a business broker's experience with real estate, as 13 states in the United States require business brokers to have a real estate license. Additionally, business brokers will often draw up the paperwork associated with selling and buying an existing business. This helps assure accuracy and understanding from both parties. Business brokers are paid based on the sale that they facilitate; in North America, their compensation can range slightly higher than your average real estate associate. However, this fee can be extremely worthwhile when you consider the complexities and the assistance you are getting in navigating the steps to buying a business. Don't let any more new business opportunities pass you by: contact a business broker today.