Expert: Marina Lando - 5/16/2006

Question
My husband and I are trying to find a commercial loan for a business. The business has been around for 15 years. Revenue up 10% over '04 and 30% over '03, but the current owner only has financials for the last 18 months. The business is priced at $169000, Revenue $163,000, Cash Flow $88,500, Inventory $23,500, FF&E $72,700. Our situation is Husband will keep current job as a treasury consultant, we have 60k equity in personal home, credit score of 705, no debt to mention besides home. Any suggestions? It is my understanding from the business broker other people have had a hard time finding someone to lend on this because of the the owner not keeping up with the financials. Do you know of any company willing to loan on this. We have 10-15% to put down in cash also. Thank you for any help.

Answer
Dear Susan:

I strongly advice you against buying a business that could not provide financial data (specifically Tax returns). It is dangerous, because there is no proof of profitability. For your own good find another one.

Recomended reading:
http://www.blquest.biz/buybusiness_info.htm


Sincerely,
Marina Lando
Business Loan Quest
www.blquest.biz