Paul T Long

to buy an existing business

Quick Links:

Overview    |   Financing Options Available   |   Helpful Attachments   |   Calculators   |

|   Helpful Links   | Helpful Resources  |   FAQ

 

 

Overview

Buying an existing business is a viable option before starting your own business, but careful and educated research into all operational and financials is essential. As the prospective business buyer, you must carefully analyze the existing business to be certain that it includes accurate and realistic information and it is what you expect to eventually run.

 

 

Helpful Resources

Video-How to buy a business

Video- What bankers look for in a manufacturing company

Video- What bankers look for in a service company

Video-How business bankers look at cash flow when underwriting a loan

Video- What is an SBA 7a Loan?

 

Advisors at the Small Business Development Center (SBDC) help local small businesses get free coaching and advice to help grow or purchase a business.

Tacoma/Puyallup – John Rodenberg
Address: 400 E Pioneer, Suite 103 Puyallup, WA 98372
Telephone: (253) 680-7768
Fax: (253) 680-7771
Email: jrodenberg@bates.ctc.edu
Lacey – Jennifer Dye
Location: Olympia
Address: 4220 6th Ave SE Lacey, WA 98503
Telephone: (360) 709-2050
Email: jdye2@spscc.edu
South Seattle – Steve Burke
Address: 13925 Interurban Ave. South, Suite 100, Seattle, WA 98168
Telephone: (206) 246-4445
Email: steve.burke@wsbdc.org
Auburn – Taryn Hornby
Address: 1221 D St NE Auburn, WA 98002
Telephone: (253) 520-6261
Email: THornby@greenriver.edu

Looking for other SBDC advisors in Washington? Click Here

 

 

FAQ

What kind of down payment do I need to purchase a business?

This is a difficult answer as it is anywhere from 10-25%. This is dependent on the loan program and type of business the industry is in.

 

What kind of experience do I need?

Banks will always want to have similar experience when purchasing a business.

Good Example: You are a general contractor and you want to buy a window installation business

Bad Example: You are a doctor and you want to purchase a restaurant.

 

 

Do I need collateral?

Yes, the more collateral you have the better the loan process will go. Collateral is generally equity in a home- not vehicles, jewelry etc.  The good news is SBA loans cannot turn you down for lack of collateral, but banks can, In general, banks will look for any available collateral to secure the loan.

Good Example: $550,000 purchase price, 15% down, You have $100,000 equity in your home and business assets of $50,000 this would be an ok SBA deal.

Bad Example: $550,000 purchase price, 15% down, you rent and have no assets, business assets are $50,000, this could be difficult.

 

Have more Questions? Are you located in Washington State?

Contact Paul Long

Call or Text (253) 300.5414  email: paul@paultlong.com