Entrepreneurs taking this path might need to apply for business acquisition loans to provide the funds they need for their purchase.
You can succeed as a business entrepreneur in several ways. Maybe you’ll start your own small business from scratch. Maybe you’ll join the leadership team of an existing business and help it grow. Or maybe, you’ll take the third path: purchasing an existing small business and, through your leadership, making it even stronger. Acquiring a business can be a smart move and a time-saver. You don’t have to invest the time and money needed to grow a new business from the ground up, but acquiring an existing business can also be a costly matter. Entrepreneurs taking this path might need to apply for business acquisition loans to provide the funds they need for their purchase. Unfortunately, qualifying for such loans isn’t always the easiest of tasks.
What You’ll Need
To qualify for business acquisition loans, entrepreneurs need to prove two things:
- First, they’ll need to show lenders that they have a plan for the business they are acquiring.
- Second, they’ll need to show lenders that they are credit-worthy.
If you need financing to acquire a business, you’ll need to create a comprehensive business plan that spells out how you’re going to keep your acquisition healthy and growing. A business plan should include an analysis of potential customers, plans to attract new customers, marketing strategies, and any planned additions to the business’ line of products or services.
How Credit-Worthy Are You?
Once you have a business plan in place, you’ll need to prove to lenders that you are worthy of their credit. Basically, lenders – usually private banks or government agencies – want to know that you’re unlikely to default on your acquisition loan payments.
- A good credit score – the three-digit number that shows how well you’ve handled your finances in the past – helps here. A high score shows that you have a history of paying your bills on time, something that lenders will appreciate.
- You can also show lenders copies of your most recent bank statements to prove that you have cash reserves you can call upon if your business needs additional financial help. Copies of your most recent income tax return statements can show that you’ve managed to bring in steady streams of income for the last several years. And if you still hold down a full-time job, bring in copies of your most recent pay stubs. Again, this shows lenders that you have the financial wherewithal to steer your new business acquisition through tough times without resorting to skipping on your loan payments.
A Trusted Partner
Negotiating the path toward a successful business acquisition loan can prove complicated. That’s where we come in. We have the experience to help you find acquisition funding and to qualify for a business acquisition loan. We’ve helped entrepreneurs just like you find their own business acquisition loans, and we’d be happy to help you do the same. Call us today for a consultation. It’s time to become the entrepreneur you’ve dreamt of becoming.