Buying a Business - Episode 2 - Securing Funding!
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Show Notes
In this episode, Shaz looks at the different ways you can secure funding to buy a business. there are a variety of different ways and each has different challenges.
Shaz explains in detail why deferred payment works exceptionally well and is his personal choice for funding. It means putting in the work to understand the motivation of the seller but it’s about you not having to put any money into the deal. When you can finance purchasing a business in this way it opens the opportunities for scaling securing multiple businesses.
KEY TAKEAWAYS
- You could take an unsecured loan, depending on the size of the business this could be used as the deposit
- To take out a secured loan, usually, you will have to provide a guarantee or security and you will need to have a good business case and a good team around you.
- Peer to peer lending can secure funds quickly but the interest with be higher.
- Deferred payment means you agree to the purchase and the payments are then split over
- The initial payment can come from the bank and then the subsequent payments from the profits of the business over several years.
- Deferred payment can usually be viable over 3 to 5 years
- Small businesses can be difficult to sell so a deferred payment can be acceptable when they are motivated to sell.
- You need to understand their motivation for selling.
- Deferred payments work exceptionally well
BEST MOMENTS
‘You need to make sure you can sustain the business’
‘Depending on how you structure the business a loan could get you started’
‘No money down from a buyers perspective can work really well’
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: