Boy have things changed since my last post!
Banks and financial institutions have virtually stopped lending money for business purchases. Now if you
want a loan, the banks will tell you to get a written valuation on your properties and assets BEFORE
putting in your application. Gone are the good old days of finance approval conditional on a valuation of
your home or investment property. That has really slowed things up! Also, most financial institutions will
only lend 20 to 30% of the business price – provided there is sufficient “assets” to cover the loan.
Businesses which are 90% plus goodwill may not qualify for a loan. Such businesses include service businesses like training companies, professional services, mobile services etc.
If you are a buyer, please determine what you will be able to fund in purchasing a business BEFORE
going to see a broker. In many cases the amount you can loan will be significantly less than you think due to property prices having fallen!
Boy, how times have changed.