January 16, 2018 at 6:29 pm #149030
I’ve been working in the rental industry for 22 years for the same company and my wife has been there with me for 15 years. We still live somewhat paycheck to paycheck but was offered the chance to purchase a store we were approached about but don’t have the collateral due to the economy collaps and had to use our savings and retirement to survive. We just haven’t recovered yet but have good credit and plenty of experience and feel we can make a difference in the company being sold. What can I do to proceed in acquiring this business and does the rental equipment apply for down payment?January 17, 2018 at 1:55 am #149920
Congrats on the opportunity to buy a store! You certainly sound like you have plenty of experience, which is a huge plus when looking for financing. The one thing I’m a bit confused on is your rental equipment. Do you already own the equipment for your store? If so, that could be used as collateral but may not make a huge difference either way depending on your lender. You can’t use that equipment as any type of required down payment though. You’ll likely need to come up with those funds.
Your first option is to find a financial backer, investor, or partner who likes your experience and is willing to put up the money and let you work in the business. This can be harder said than done, though. Another option is to use a Rollover for Business Startups (ROBS), which gives you access to your retirement funds in a tax deferred account without paying any early withdrawal fees or tax penalties. The last option is to get a loan. I’d recommend checking out our article on how to get a loan to buy a business, if this is your only option. Good luck!