Are you looking for Business Purchase Finance to buy your own business? Will you be a sole trader or are you going into this business with family and/or friends? We have financed many small business purchases and we can assist you to secure the funding required to make your business dreams a reality.
Please check out our Case Study Concrete Business Purchase.
How we will help you get Approved
We will build a case to show the lender that you will make a profit and can repay the loan. Part of this case is the cash flow forecast which shows all future incoming and outgoing money. We will tell them about you and your experience. We will tell them what the money is for (for example buying a concrete truck business).
What is the Value of the Business?
Lenders will use different ways to determine the value of a business. The asset valuation method calculates the net asset value, which is the difference between business assets and business debts. The cap rate method looks at the net operating income (most often of the last 3 years) and divides that by the current market value. When valuing business lenders will also look at:
- The business contracts and when these are due to end
- Unpaid invoices
- Agreements with suppliers
- Property and Equipment on the balance sheet – if not owned what are the lease contracts
What is Goodwill and can it be financed?
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable.
Most lenders do not like financing goodwill. There are ways to get around this if you are a sole trader and own equity for example.
What do you need to apply for a loan?
To get a loan to buy a business you’ll generally need to provide the following information:
- The current balance sheet of the business
- Tax returns and profit and loss statements
- Your personal information, including your qualifications and details of your assets and liabilities
- Financial information of the sale, i.e. how much you plan to invest in the business
- A business plan including profit and loss forecasts and expected cash flow
Why use us?
We can help with many different types of commercial finance funding options. We are much more than an online loan matching site. It is in your best interest to look at the whole picture. Do you for example already have loans with certain lenders? Do you have a mortgage? What are your business plans for the future? We will help look for the best solution. Our aim is to create long-term relationships with our customers.
The relationships we have with our financiers have been developed over time and have been nurtured through the course of extensive dealings. The strength of these relationships underpins our ability to offer superior services and competitive products.
Whether you are a sole trader or a large company; there is a wide range of commercial finance options available to you when you partner with Commercial Point Finance. The next time you and your company are in the market for commercial (business) finance, rely on Commercial Point Finance for your financing advise.
Check out our Commercial Finance Page for all our commercial finance options.
Call Now to discuss – 02 9453 0300.