Buying And Financing A Business Purchase With An SBL Government Loan In Canada

Let Your Business Purchase Put You On The Road To Richistan !


OVERVIEW – Information on the buying and financing of a business purchase in Canada using a SBL government loan strategy. A Hands On How To!




At some point in time many business people have the opportunity to purchase a business in Canada. That’s buying a business, not starting one by the way!

But financing the business purchase, i.e. putting your transaction together is another story. Here's one great way to do it if you business fits some basic criteria, and it’s via the SBL government loan. Finally, some help from Ottawa, but we digress...


There are of course the obvious advantages to buying versus building a business. First of all it's easier to find if you know what you are looking for, and many of the challenges of starting a business are immediately eliminated when you have a turnkey operation already in place. Finding premises, buying and financing assets, and generating revenues with a sales / operating team are instantly removed. Not that we're making anything too easy.

Oh and buy the way when we think in turnkey, we often think franchises, and to make it perfectly clear our strategy today also covers existing franchises, or corporate stores owned by the franchisor .

Getting a clear look and quick access to the business financials, but no matter how good, or bad... those financials look it’s a case of also trying to understand the motivation of the seller. Things like a financial tool called the VTB... the vendor take back can often play a key role in our financing strategy today and the proverbial ' motivated seller ‘ is often ok with a vendor take back . (If not, he or she is probably willing to negotiate price a bit more?!)

When you utilize the government SBL business loan for a business financing strategy in Canada you need access to those financials. They will tell us what assets are in the business, and by the way, it’s difficult, if not impossible to finance a smaller concern when there is a huge ' goodwill ' component in the final purchase price.

Although the income statement is important in our financing strategy via the SBL loan it’s not the deal breaker. However clearly you do want to know that the business is generating sales, that’s growing sales, and profits. If not the business can still be financed, don't despair, but you better have an action plan in place for that missing sales and profit strategy!

Getting back to the balance sheet, that’s key today in our finance strategy of buying a business in Canada. Here's where the SBL government loan comes into place. That’s because it finances the current and fixed assets of the business, as well as existing leaseholds. Leaseholds?

Yes, the government loan financing via the BIL/CSBF program finances those three asset categories - fixed assets, receivables as a portion of the current assets, and leaseholds. A qualified appraisal of these is required and the SBL program finances a total of $350,000.00 of these assets. A down payment or equity injection by yourself, as well as perhaps our previously mentioned vendor take back can get you often pretty close to a 1/2 Million dollar financing for your business purchase.

So, is that a creative strategy? We think its closer to a common sense strategy, and one that comes with great rates, terms, and structures, including limited personal guarantees and flexible repayment options that include repayment without penalty.

Buying and financing that business purchase via the SBL loan is a solid way to become a Canadian entrepreneur. Speak to a trusted, credible and experienced Canadian business financing advisor to kick start your business purchase.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS PURCHASE FINANCING EXPERTISE














Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/buying_business_financing_purchase_government_loan.html