Business Brokers Serving Connecticut from Offices in Farmington & New Haven

If you need to finance a portion of the purchase price of the business sale consider contacting a bank that offers SBA bank loans. You will need about 20% of the purchase price as a down payment on the business being purchased; and if you are purchasing both the business and the real estate together about 10% down payment on the real estate being purchased. Some financial institutions require lower combined down payments when both are being purchased together.

It is advantageous to purchase the real estate when you are purchasing the business because then many banks will extend the repayment terms calling the loan a "blended mortgage"; where repayment terms can then go out to 20-25 years, versus 7-10 years for" business only" purchase financing.

In 2011, financial institutions (albeit banks, non-bank lenders, private capital companies, or credit unions) will loan 75-85% of the total purchase price of non-real estate assets being purchased and 90% of real estate when the real estate is part of the business purchase.

Most financial institutions make business loans through the SBA and the SBA Bank loan guaranty program. A number of SBA approved financial institutions can offer "express loan service" which in many cases can provide for a review and initial approval in one week.

When SBA loan programs are utilized, the SBA may ask the seller of the business to assume some of the loan risk by financing a percentage of the purchase price.

Hartford Business Brokers helps in arranging the financing needed to complete the business sale that we are brokering at no additional charge to the seller or the buyer. Call us today to discuss your particular situations; sometimes it helps to get out in front of the business purchase to explore the financing options.