4000 businesses for sale in Florida
First….let me get your attention by asking you an important question:
- If you had just $150k to buy a business – which would you rather own…one that earns a $75k a year income or $500k a year?.
- If you paid $150k cash for a business – it would produce about $75k a year income…Conversely, buying a $1M SBA lender pre-qualified business with a $150k down could produce $500k cash flow.
BUY A SBA LENDER PRE-QUALIFIED BUSINESS!
What is an SBA lender pre-qualified business?
Banks will not loan money for the initial purchase of a business. WHY?
Consider The Following:
- What happens if you default on your Home Mortgage? Bank forecloses. Banks have special Real Estate firms which sell foreclosed properties. The bank will usually recoup 50-75% of the loan, depending on the condition of the property.
- What happens if you default on your Auto loan? Bank repossess your car. Banks have specialized dealers who will sell the repossessed cars at an Auto Auction. The bank can usually recover 50-75% of the loan, depending on the condition of the car.
- What happens if a bank loans money on a Pizza Store and the owner defaults on the loan? What can a bank do with a Pizza Store? Banks have no way to recoup any of the money loaned to buy a business. The loan becomes a Total Loss to the bank. There was NO COLLATERAL FOR THE Therefore, Banks DO NOT loan Money to buy businesses.
BUT THERE IS ONE EXCEPTION
The US Government’s SBA (Small Business Administration) agency promotes business ownership for buyers wanting to buy a business, who have good credit. A business broker helping a business owner sell their business will submit the businesses’ 3-years Tax Returns to an SBA lender. The lender will carefully review the Tax Returns to determine if there is sufficient cash flow created by the business for a buyer to make his loan payments. If there is – the SBA lender pre-qualifies the business and will loan the FULL asking price of the business, with only 15% down. That means a buyer could BUY a $1M business for only $150k own, which would generate about $500k in cash flow. That’s an exceptional DEAL for the buyer!
A Buyer will ALSO have to be pre-approved by the SBA lender to qualify for the purchase. This qualification takes place after a buyer has found a pre-qualified business to buy, it precedes a buyer making an OFFER TO PURCHASE. Most sellers will require a buyer to be pre-approved for the loan before they will consider an offer. The SBA pre-approval is like getting pre-approved for a Home Mortgage when trying to buy a home. The SBA lender will review a buyer’s credit history and assets – to confirm no bankruptcies in the last 10 years.
ADVANTAGES OF A PRE-QUALIFIED PURCHASE
- BUSINESS FINANCIALS ALREADY REVIEWED AND CASH FLOW CONFIRMED TO MAKE LOAN PAYMENTS
- SBA REVIEW SIMPLIFIES DUE DILIGENCE BECAUSE ALL FINANCIALS HAVE BEEN REVIEWED AND APPROVED
- BUYER IS ONLY REQUIRED TO PUT 15% DOWN TO PURCHASE BUSINESS
- SBA WILL INCLUDE NECESSARY INITIAL WORKING CAPITAL WITH THE LOAN
The Absolute Best Way To Buy A Florida Business
Some buyers may be limited by the amount of $ they have to BUY a Florida Business.
That being the case – the 2 BEST ways to buy a Florida business are:
SBA Lender Pre-qualified
– SBA bank will loan FULL PRICE of business with 15% down. That means for $150k down – a buyer (with good credit) can buy a $1M business which creates about $500K cashflow.
– Some business owners will finance a portion of their business for sale. Generally, they will require 50% down. A seller who is willing to offer his own financing should give a buyer a good comfort level – that it’s a good business that will make enough $ to make the payments.
A BUYER has the ability to search over 4000 businesses for sale – the links above will take you to the BUSINESS SEARCH PAGE
ADDITIONAL BONUS – Some buyers may only have $100,000 – AVAILABLE FOR PURCHASE
3. Businesses priced under $100,000