How to raise funds to buy existing business?

[loanightmare]

I have been working for a small business alongside the owner for four years but now they would like to sell up. The business is for sale for under £200k and makes on average £65k profit each year. I have all the experience to keep the company in profit with a proven track record and a good business plan but, I have a poor credit history... I have tried the banks, SFLG's and brokers with no success. Is their no hope for people with bad credit running a company. I have been trying for almost a year and my dream is slowly coming to an end.

Can anyone point me in the right direction please

[Ian J]

The best people for you to approach are the brokers who specialise in "difficult cases" It would be very difficult in normal times for someone with a poor credit history to borrow funds but in this day and age I would think it's almost impossible.

The banks are not lending to what we perceive to be sound risks at the moment so the likelihood of lending to someone who has a track record of not paying his debts is highly unlikely. Whilst not wishing to be unduly pessimistic I don't see much point in raising your hopes if there is little liklihood of your being successful in your quest.

In case there is another way round the problem what does the company do,
how much is the owner wishing to sell it for and what sort of assets would you be buying?

[DIY Accounting]

With such a good level of profit it may be possible to negotiate a deal with the present owners to pay part of the required price over a year or two.
They have also been trying to sell for a year and a little surprising the business has not been snapped up at such a low pe ratio - price/earmings

You probably need the services of a financial advisor to source funds
ASC have a national network of brokers who might be able to help
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[profitxchange]

Your best bet is to do a deal with the current owners. You will waste a lot of trying to do it any other way. If they want to sell and you want to buy - there has to be a way doing a deal.

Have you actually sat down and discussed it with them?

[Portman Asset Finance Ltd]

you may be able to raise finance against business equipment owned within the business.

It depends if there are any secured assets in the business like: cars, plant, vans, printing pressess, machinery etc.

There are asset finance companies specialising in buyouts. Your poor credit would be a concern. Perhaps this needs to be sorted first?

Are you a property owner? do you have sufficient equity in your house to secure finance on that?

Can family help?

[lucasoid]

Is that 54k gross profit or net?

just wondering