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How to Buy a Business When You Are Short on Cash

By Tai Goodwin on
Tai Goodwin
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Nov 21 in Buyers 0 Comments

If upfront cash is the only thing keeping you from buying your dream business, consider these alternatives for financing your purchase from Entrepreneur.com:

Maybe you’ve found a great business opportunity, but are short on the cash needed to make the purchase.

If upfront cash is the only thing keeping you from buying your dream business, consider these alternatives for financing your purchase from Entrepreneur.com:
 

  • Use the seller's assets. As soon as you buy the business, you'll own the assets--so why not use them to get financing now?
     
  • Buy through co-op. If you can't afford the business yourself, buying with a partner or co-op.
     
  • Use an Employee Stock Ownership Plan (ESOP). ESOPs offer you a way to get capital immediately by selling stock in the business to employees.
     
  • Lease with an option to buy. Just like in buying a home, some sellers will let you lease a business with an option to buy.
     
  • Assume liabilities or decline receivables. Reduce the sales price by either assuming the business's liabilities or having the seller keep the receivables for a specific time.

Read the full article here: How to Buy a Business – The Art of the Deal 

Tags: ESOP, business financing, buying a business
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