Financing Options

VR Business Brokers in Aspen, Colorado helps arrange financing for buyers of businesses that we have for sale.

VR works closely with some of the nation’s top lenders who arrange financing either in-house, through a 401k rollover which allows the buyer to use their retirement funds to buy a business, or through a U.S. Small Business (SBA) loan guarantee program.

Business acquisition loans range from $150,000 to $5 million and more.

For example, one of VR Aspen’s lending partners is Guidant Financial, Guidant has shared with us an online pre-qualification tool to help prospective buyers understand how big a business they can afford, as well as which type of acquisition financing might best suit their needs. Guidant specializes in tapping buyers’ 401k assets in order to purchase a business, as well as offers SBA loans and unsecured lines of credit. Click here to take advantage of Guidant’s quick pre-qualification tool.

In some cases bank financing is not possible.  If a business has gone through a period of volatile profits and losses, the business may not qualify for bank acquisition financing.  In this event the seller may loan the buyer a portion of the purchase price of the business. This is known as “seller financing” or “seller carry-back.”  Seller financing typically involves a repayment term of two to five years, long enough for the business to grow in profitability in order to qualify for traditional bank financing.

Another financing option for businesses that do not qualify for bank acquisition financing is to determine part of the purchase price of the business to the business’ performance under new ownership. This option is known as an “earn-out.” The seller helps “earn” the full purchase price by assisting the new owner in managing the business to increased sales and profitability.  Businesses with high growth potential are good candidates for acquisition with an earn-out component.

Please contact John Hornblower at (970) 429-8220 or at [email protected] to discuss financing options as well as all other aspects of buying or selling a business. We look forward to helping you.

Are you ready to learn more?

Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer.

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