In this economy it can sometimes seem nearly impossible to acquire a business loan. When one does receive financing from a bank, it is often not as much as the asking price. This puts a damper on a deal if the buyer cannot afford to close it. These tips will help improve your chances in receiving a business acquisition loan.
Bankers look at the person’s personal credit when they apply for a loan. If you have poor credit, chances are that the business loan will not go through. Work on building your personal credit before you apply for a business acquisition loan.
If the current business owner possesses years of experience that proved to build an established company, and the buyer has little experience running a company, the banks will look at this negatively. This is why it is important to choose a business in an industry that you are familiar with. Not only will it increase your chance at being successful, but the banks will recognize this when examining your loan application.
It is vital to understand how you personally can affect your chances of receiving a business acquisition loan. For more advice please contact an M&A intermediary at George & Company.