Do you want to buy a fish business and you don’t have enough money to pay off down payments? If yes, then you are in luck because here you will find some great ways to buy any kind of fish businesses with no money down. It is a bitter truth that finding funding can be the most challenging part of buying a small business. Most potential buyers have limited funding and they need to finance a good chunk of the sale. Things could get a little ugly if you have no money to make down payments or pay for the purchase price at all.
Fortunately, there are some good options that potential business buyer can use. However, in order for these options to work for you, circumstances have to be right. Let’s have a look at these options.
Have All Records Ready before Marketing Your Business
There are some very important records and statements that every seller should organize before marketing their company for sale. These items include the following:
- The last 3-5 years of federal tax returns for your fish company being sold.
- The last 3-5 years of financials.
- The last 3-5 years of monthly bank statements.
- List of all hard assets (equipment & tools) that you are selling with your fish company.
- Copy of current lease.
- Licenses & permits.
There may be some more items that you have to keep ready before you take your fish company on the market for sale. It is strongly advised to hire a professional adviser to find out what other records you should provide to the potential buyer.
Get 100% Seller Financing
One surefire way to buy a fish company without paying a dime is 100% seller financing. To get this type of financing, you need to find a seller first or local service provider. There are sellers that are willing to offer 100% financing. If you succeeded to find a seller like this, buying a fish company with no money can become a reality for you. There are many sellers that are willing to offer some kind of financing as part of the sales agreement. In fact, there are many lending institutions out there that exclusively check the seller’s ability to offer any sort of financing. If a seller is able to provide a specific type of financing, it gives the sales deal a certain kind of credibility with the lending institutions. This is because it shows them that the seller is confident that the potential purchaser has solid means to run their business after acquisition and they can repay the loss.
In most sale deals, sellers offer financing between 20 and 50 per cent of the remaining balance after down payment is paid off. In order to get 100% seller financing, you need to do some legwork to find a seller who wants to give 100% financing. These types of sellers usually want an immediate exit but don’t necessarily need the money right away. Finding this kind of seller can be very tough as 100% seller financing is a risky move, but still is a valid option for those potential buyers who don’t have money to buy a fish business.
Use Other Sources of Financing
If you have found 100% seller financing, you can use alternative sources of financing, such as angel investor. This kind of investors may be a potential source of funding your fish business purchase. These investors award funds based on a criteria which is a lot different than the criteria that traditional lenders use. Due to this fact, the amount of money that as a buyer you have to put down doesn’t really matter. Some other good funding sources that you can use include 401k or retirement savings, financing from friends and family etc.