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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.
Financing Options Available
SBA 7a Term Loans (Gesa Credit Union is our Preferred SBA Lender)
Helpful Resources
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 – Ann Zimmerman
Address: Tacoma/Puyallup
Telephone: (253) 680-7768
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
Helpful Links
Reliant Valuations- Purchase a Business Valuation
CBA- Commercial Multiple Listing Service
Local Business Brokers (South Sound WA)
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