Depending on a business creation or takeover project, the choices in terms of financing will be different. It is therefore important to have knowledge of loans intended for professionals before applying for a financial organization.
Store opening: what credit?
Opening a business is a major project, you have to study the feasibility of the project, estimate future sales and above all quantify the cost of launching the activity. There can be several financings which can intervene because to finance the purchase of material, the stock and the formalities of creation of company, it is mainly the professional loan coupled with a personal contribution of the manager who will meet the need. The banks will be watching over the guarantees provided by the entrepreneur, relying in particular on the forecast.
Regarding the premises, everything will depend on the entrepreneur’s wish, namely to rent a commercial premises or to buy it directly. Regarding the rental, most banks will advise to finance the first rents to allow the business to start without using the available cash. For a business purchase, it will be necessary to define the location and in particular the mode of acquisition, either a professional loan (less than 75,000 dollars), or a real estate loan or a real estate leasing (rental contract with subsequent acquisition final).
What credit to buy a store?
If the opening requires significant funds, the purchase of a store will be pinned otherwise. That is to say, an assessment of the business will be carried out by the seller, either directly or through a specialized consulting firm. It is on this basis that the company will formulate a sale price, which the buyer may respect or not, via a slightly lower proposal for example. In both cases, a price will be defined to allow the buyer to request a loan. The specialized credit institution will assess the operation based in particular on the last two balance sheetsof the current company, with in particular a glance on the gross operating surplus.
Most buyers will turn to the professional loan, it can finance 80% of the purchase amount of the store / business, the rest being met by local financial assistance or by the contribution of the buyer. It is also possible to go through a seller credit, it is actually the opposite effect since 80% of the sum will be made up of a contribution and the remaining 20% will be concluded via the seller loan. The buyer and the seller of the store agree on reimbursement terms with a contract deposited with a notary, the buyer thus reimburses the remaining sums each month (the duration often does not exceed two years).
Get help in financing a business
Whether to open a business, under franchise or not, whether to buy a business, We are able to support you through its pole of expertise in professional credit. The idea is to allow you to complete your project of creation or recovery in the light of your circumstances and needs.