Purchasing a competitor could be instant “fuel” for your business. Some business owners, for a variety of reasons, are looking for an exit. It could be loss of interest in the operation, personal stress, divorce, failing health, or several other personal reasons they would rather move on and sell their business to someone else.
The longer the target business has existed, the more likely it will be they will hold a list of account receivables, hopefully a long one - including past and current customer accounts and even assets which could instantly boost your bottom line, but it costs money to buy a business and sometimes you might not have the working capital to make the purchase. That’s where BUC Financial comes in.
Additionally, this is an ideal situation and very good reason to “borrow money” and apply for a business line of credit or working capital account with a lender or affiliate such as BUC Financial. One of the most important criteria lenders are interested in knowing when a small business wants to borrow money is what exactly the money will be used for.
Showing a lender that you are borrowing money to grow your business is one of the best ways to indicate that you are serious about growth and that the money is not being used for general cash flow problems which could indicate that the business is hurting. Borrowing money to purchase a competitor, equipment, customer accounts, sales facilities, employee growth, are all good reasons to borrow and equally good indicators the money will be paid back.
Many times, a small business will borrow in order to finance equipment, to improve business operations so that the business can grow, run smoothly and/or expand or otherwise improve. Hiring or expanding a sales team is also another popular reason a small business may look to borrow money and lenders do like to see that the funds being borrowed will support a healthy business strategy fueling or contributing to further growth while indicating the likelihood for pay-back of the loan.
However, lenders also look positively on the aggressive and strategic decisions such as a business owner and/or entrepreneur looking to finance the purchase of an existing business to fuel its own growth.
If you are interested in purchasing a business or competitor and need working capital, take a moment to fill out our online application. Purchasing another business can be one of the most strategic and aggressive ways to grow your own operation and build your portfolio of assets and accounts, both of which will strengthen your position in your market and likely lead to an approval of your loan so long as you have an income stream of revenue substantiating repayment.
To learn about the process of acquiring a business line of credit, visit our Frequently Asked Questions page. Ready to apply? Start your application now and get matched with up to $500,000 today!