Are loans to buy a business different from loans to start a business? There are different financial packages available for different kinds of business ventures. Again, there are all sorts of financial packages....
Again, there are all sorts of financial packages. A loan is a loan is a loan with modifications. The difference probably would be if the established business has a track record and that get backs to collateralization. You may be taking out a loan and you might be able to collateralize. Someone who is never going to be giving that loan is going to look at the financial soundness of that business. They will be evaluating the business and its assets to determine if the loan amount is appropriate, now it is similar to if you are going to be getting a mortgage. You have someone come out and do an assessment of the cost of the homes in your area, for example, and often that is what the mortgage is based on. So there would be an assessment of the financial soundness of that business. As a small business owner, are you going to be buying the debt of the business or are you going to be buying the inventory. All of those things come into play whereas if you are starting a brand new business, some of those things are yet unknown.
The third and most viable alternative is to use one of the SBA resource partners: SCORE, SBVC or WBC. They have professionals on staff that help individuals to claim to develop their business plan at no cost. That is the service that the SBA as part of the federal government offers to our taxpayers.
