Financing online business

[hassen1]

I read the following question and answer regarding financing online business. I would like to share it with our members for their information:

Question: I'm interested in buying a small but profitable online business. I would need to get an SBA loan to finance the purchase. The problem is that the business has only been in operation for about 9 months. Also, being an online business, it doesn't have any tangible assets. Do you think I will be able to get an SBA loan given these factors?

Answer: Pardon my bluntness: No way! Sorry. The SBA 7(a) loan guarantee program includes specific financial requirements that the business must meet which this business does not satisfy. Most specifically, they require at least two years of tax returns to verify the financials. Insofar as assets are concerned, this is less of a worry as these loan programs require personal assets (i.e. home equity, marketable securities, real estate, etc) to guarantee the loan. In any event, the SBA is not the way to go on this deal.

However, this does not mean that the deal can't be done. Any seller of a 9 month old business has to understand that they will be required to provide financing for the deal or offer a significant discount for an all cash purchase. If this particular seller is not flexible in his/her terms, then chances are they will not sell the business, or they may sell to a much uninformed buyer.

[humpty]

Originally Posted by hassen1

I read the following question and answer regarding financing online business. I would like to share it with our members for their information:

Question: I'm interested in buying a small but profitable online business. I would need to get an SBA loan to finance the purchase. The problem is that the business has only been in operation for about 9 months. Also, being an online business, it doesn't have any tangible assets. Do you think I will be able to get an SBA loan given these factors?

Answer: Pardon my bluntness: No way! Sorry. The SBA 7(a) loan guarantee program includes specific financial requirements that the business must meet which this business does not satisfy. Most specifically, they require at least two years of tax returns to verify the financials. Insofar as assets are concerned, this is less of a worry as these loan programs require personal assets (i.e. home equity, marketable securities, real estate, etc) to guarantee the loan. In any event, the SBA is not the way to go on this deal.

However, this does not mean that the deal can't be done. Any seller of a 9 month old business has to understand that they will be required to provide financing for the deal or offer a significant discount for an all cash purchase. If this particular seller is not flexible in his/her terms, then chances are they will not sell the business, or they may sell to a much uninformed buyer.

thanks for sharing hassen, any business being sold after nine months, well, i just can't see how profitable it could be if it has to be sold after nine months, sounds risky i'd say

[mini_0]

Well , you can go for loans online , tey are a good way to start for financing and also you can start returning them as you start earning . Make sure they are trustworthy . Online business loans allocate funds in the easiest way and without being any delay if required details are furnished accurately. The amount can be acquired in two division viz. secured and unsecured which are designed to suit every business professionals.The secured form expresses its demand of mortgages from the applicants against numerous benedictions offered, whereas, unsecured form is the alternate option if persons do not have property to place.