Question Hello I am writing to try to find the best way to purchase a business. I am currently looking at an auto shop in new York that grosses between 400 and 500 thousand dollars a year the lease on the business is for 25 yrs and they are asking for around 500 thousand for the business my question is if it is possible for me a 23 yr old with poor credit to be able to buy the business and if so how do i go about it
Answer Dear Matthew,
First of all it is impossible to know if the price for business is good unless you look at Net Income and add all expenses that generated by the current owner (salary, his personal cell phone, his personal car, meals, etc). Than you must take this adjusted income two times and add the cost of equipment that goes with the business - this is your approximate price for the business.
The bad news is that with poor credit you have only two ways to purchase this business:
1) Pay cash
2) Ask owner for a loan - if he thinks you are the right person for business, he might grant it to you.
I hope this helps.
Sincerely,
Marina Lando
President
Business Loan Quest
www.business-loan-quest.com
www.blquest.biz
