Where can I get a loan to purchase a business, even though I have bad credit at the moment?
Asked by
Omiami (
11
)
February 7th, 2010
Looking to purchase an established restaurant for $325K but can purchase it with owner financing with $200K down. The restaurant has been established for over 14 years and does very well. I have over 10 years experience in the restaurant field, however, the only drawback right now is my credit.
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4 Answers
Even small businesses with great credit and history of success are finding it hard to get a loan right now. I would be surprised if you can get the loan. And if the seller has any sense, s/he will put a clause in the terms of sale that the down payment cannot be borrowed. I hate to be so negative, but that’s the facts as I see them.
I was in the restaurant business for 10 plus years as well. Having 10 years in the restaurant field and owning a restaurant can be two drastically different experiences/knowledge power. This may need to be another consideration before purchasing as well.
As @ETpro stated, many people with good credit are finding it difficult to get loans. I don’t think with our economic crisis people should be borrowing money to buy a business going under. If you don’t have the money then don’t purchase it.
If my credit was bad, I would try to build it up with smaller ways instead of such a large loan.
Maybe you could get a taxpayer ID number that you will use in the business and give them that instead of your social security number. No credit is better than bad credit, but in this economy good luck. The only other thing I could say is that you can try to recruit investors. Maybe you could be a general partner and get employees to buy in. Do you have ANY of your OWN money to put in?
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