Purchasing an already-established business is very similar to starting a new business in terms of how to get financing for the project. To purchase a single bar, you will likely need to obtain a small business loan from a bank or other lending institution. The fact that the bar is already in operation, or used to be in operation, can work to your advantage when applying for the loans, as you can show the lender how well the business has done in the past.
Obtain all financial information about the bar from the current owner. Be sure to ask for yearly revenue sheets, expenditures, tax forms and any other pertinent data.
Develop a business plan in which you look at the financial information provided by the bar’s current owner and present ideas on how you can ensure its profitability under your ownership and management.
Make appointments with several banks and other lending institutions to talk about a loan to purchase the bar.
Present your business plan and the established financial information of the bar’s history to the loan supervisors.
Compare the loan offers from various institutions and choose the one with the best terms and lowest interest rate. You may want to employ a small business lawyer or accountant to help you choose which offer is the best.
Sign all loan agreements and contracts.
In most cases, you must have an established credit history and a high FICO score in order to be approved for a small business loan.
The lending institution will also be more likely to approve your loan if you can provide a down payment (10 to 30 percent is standard).
If you are turned down for a small business loan by a commercial bank or lending institution, you may want to check with the Small Business Administration to see if you can qualify for a government-backed small business loan.
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