The Wholesale Forums

[captain_06]

Hello everyone,

I've been on this forum for a few weeks now and have read alot of interesting threads.

I've decided I want to buy and run my own business. I've got my eye on a local business that is up for sale. The issue is that the business is on sale for £30k + . The stated turn over for the running business is such that the initial investment can be retrieved back within 6 months of business.

With both a wife and rent to pay for I cannot afford to pay the asking price for the business.
What would be the best way to approach a bank? I have never taken a loan out before.
Does it have to be my bank or any bank?
Are there different rates for business customers?

Thanks in advance

[greedyboy]

You need to see the filed accounts for the company. You can then take these to the bank and borrow the money. You will have to provide at least a 10% deposit in most cases, collateral (your house) or a guarantor.

[captain_06]

I got the business accounts from the companies house website. My accountant advised me not to take the accounts from the seller as they can easily be forged after tax has been paid. I can only provied the deposit as I'm just stepping onto the earnings ladder.

Thank you for the advice greedyboy

[greedyboy]

The accounts the seller provides should always be signed off by an accountant. That is your protection if they are mickey mouse.