Business advice please. (possibly numpty!)
If someone is planning to buy an established business as a going concern eg. equipped and operating unit on a 5 year lease, is it necessary to have a business plan to present to bank in order to obtain a loan? Or would they be prepared to lend money based on last few years books and turnover/profit figures? It wouldn’t be vast amount of money as it is quite a small, privately run operation.Posted 8 years agoNZColSubscriber
Yes , maybe no depends on the terms of the loan.Posted 8 years ago
But if you are borrowing money to buy a business i would presume you have an intent to run it ? Therefore I would get myself prepared and write a business if only to make sure i focus on what needs to be done to make it work. I’d doubt the bank would care that much unless you are borrowing a lot and even then all they care about is what its turnover has been and what the order book looks like , as in, the asset itself.projectMember
Go to the bank and ask for lots of money,when they ask you for a buisness plan etc,say wheres yours,then ask them what experince they have of running a buisness as theirs has failed massively and we the tax payer are running a support system for dead ducks.
They may not lend you any taxpayers money now,dont worry,just become an MP, and defraud the state and then plead ignorance, it works,it appears.
Rant over.Posted 8 years ago
My idea is to secure the funds to purchase the business and obtain a small overdraft facility to help with initial cashflow. In the meantime I would write out a plan outlaying the facts and figures and potentially use it to assist with borrowing more in the future.
From what I’ve seen, writing a business plan and getting it right is something that takes time.Posted 8 years agoprojectMember
Being serious for once,the banks are very reticent to lend money now without you putting something into the deal, have you any experience,have the relevant customer service skills, and lastly money to invest.
Try Buissness link, theyre a semi government agency and offer free advice, and will help write a buissness plan.Posted 8 years agouser-removedMember
Ditto project – you can write a good, sound business plan in a day. Ask business link for one of their generic templates and also ask to see some sample (real) business plans.
Most local authorities have start up grants (often 50/50 – they’ll match your investment) which require you to have a BP – if you can get a hold of this funding, you could ask your bank to match it.Posted 8 years agochakapingSubscriber
I went on one of Business Link’s seminars about writing a business plan. Think it was free.
Was very useful and the day or two I later spent on my business plan was definitely the most valuable time I spent pre-launch.
Like you, I knew in my head how I’d run my business successfully, but writing it all down in neat sections helped me explain it to other people much more easily.Posted 8 years ago
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