Are you a SERIOUS buyer?
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Are you a SERIOUS buyer? What constitutes a serious buyer? Whilst you maybe looking at purchasing your first business or investing in a business the question is always how serious are you about it. When buying a home you investigate the location, you compare houses in the street, you look at local facilities and most times you have been to a bank to see how much you can borrow. Buying a business should be no different. You review the sales and Profit, the look of the business and the number of competitors in the local area and then you start to think of what price the business is worth to you but in most cases a buyer has not gone to a Finance Broker or Bank to see what their borrowing capacity is. Banks are lending less to businesses than what they used to and buyers need to be prepared. By being prepared you now have better negotiating power. A vendor is more likely to negotiate on price when the subject to finance clause is not required and or 7 days compared to 30-60 days, there is also the potential on you missing the opportunity to purchase the business because someone else is SERIOUS and has come prepared with an offer not subject to finance. Sometimes a Finance Broker can facilitate the borrowing and negotiation with lenders and in some cases at better rates than the banks so it pays to get a second opinion on your capacity to borrow money. This small investment of your time and can be the difference between looking and SERIOUS about a business opportunity….. So the question now is to ask yourself – Are you a SERIOUS buyer?
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