We bought a custom frame business, ten years ago on contract. Paid it off after 5 years. We paid $110,000 for it and $13,000 in inventory. I would like to sell I would like to spend more time with my family, I have been working 8-10 hours 6- days a week for all these years. I’m afraid to sell on contract like we bought it. That new buyers might not take care of the customers like we have. And I’m afraid they will not comit the time. These business don’t put out great incomes. What will a bank want to morgage this to a buyer. Thanks April >:(
Does the business own the structure in which it is housed? If your not including the property in the equation it will be hard for the borrower to sell the bank on the idea. How ever I don’t know much about that type of business. Are there machines involved that are valuable to some extent that the bank would look at? Inventory is always a problem as far as borrowing against no matter what the business. You may get little to nothing. In a banks mind they sell money not frames, in your case. The one thing that the bank will definitely want to see are years of tax returns and financial statements. You say it does not produce allot of income. That may be hard to sell the buyer and the bank too. Allot of times I would look for an investor/buyer, someone that could put in most money there self. Also an idea for you to keep an interest in the company whether it be 10% or 30%, just an idea.
commercial loans is probably corect, however, the U.S. Government’s Small Business Admininistration (SBA) is in the business of helping folks buy or start small businesses. More info at:
Keith