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Seller Financing
When a seller finances the buyer for buying his or her business, it is known as seller financing. Cases of a seller financing the buyer are becoming common, especially in acquisitions of closely held corporations. Seller financing is a vote of confidence to both the buyer as well as the financing institution. Such financing is usually structured as a term loan. If the seller refuses to finance any part of the purchase, buyers or banks would immediately become suspicious of something being wrong with the business. There are various advantages in it for both the buyer and the seller:

  • The seller gets a good return on his investment
  • The buyer doesn’t have to look towards other organizations for finance
  • If the buyer has any trouble, the seller will help out as he has knowledge of the business and also money invested in it
  • Employees jobs are safe and the trust of the customers continues
SBA Loans
Owning a small business comes with a lot of advantages. Not only will you enjoy the challenge and freedom of being in charge of your own company as a small business owner, but you will also find many avenues of support to guide you along your journey.

One way to finance your new business is small business loans. The government runs the Small Business Administration (SBA) as a way of promoting and expanding the strength of small businesses. By acting as guarantor for low-interest, long and short-term loans, SBA can help you fulfill your dream of owning a small business in today's competitive market.

SBA can work with you and your preferred lending institution to obtain a loan for your small business. Commercial banks, community support organizations and micro-lending institutions are all there to help you gain access to small business loans with SBA as a guarantor.

SBA sets lending standards to match your small business financial needs through its small business loan programs; your lending institution then administers the loan according to these standards. Such SBA programs add to your initial capital investment and provide the credit necessary to make your business venture a success.

Most small business owners start their own business with their own capital along with assistance from family, friends and business partners, as well as high-interest credit advances. SBA loans make it easy to gain the capital you need to run your own business, without the danger of high-interest debt piling on your personal accounts. By acting as a guarantor that supports your interests, SBA makes small business loans work for your company.
Retirement Funds
Did you know you can use your 401K or any other retirement funds for buying a business without paying taxes or penalties?

Many individuals have sufficient retirement funds to make a down payment and buy a business. Typically, every dollar of down payment is equal to a dollar of annual business earnings. In other words if you can come up with $250,000 from your retirement funds, you can invest $250,000 in a business that makes $250,000 per year.

In many cases, tax laws of America prevent citizens from dipping into their hard-earned money like 401K, IRA, profit-sharing or annuity plans. In fact, due to the tax laws in many states, you may lose more than 50% of your funds in taxes and penalties, just for accessing the rainy-day savings you've worked so hard to accumulate.

SunbeltNE helps you get a perfectly legal, simple way to acquire down payment money with your savings. We can help you release the money in your retirement funds and use it for buying a business - without penalty and without taxes. SunbeltNE has been helping entrepreneurs acquire the financial freedom of owning their own business since the past many years. So if you are looking to become your own boss by buying a business, SunbeltNE is the place to come to. You can have significant savings from elimination and/or reduction in taxes on your money and use it to pursue the American dream. You can use the money to purchase a franchise, buy an existing business or start your own entrepreneurial venture. And you won't lose a penny in doing so. If you have your questions, we invite you to talk to hundreds of new business owners who have benefited from SunbeltNE services to start or buy their own companies using their retirement funds, without distributions, penalties, taxes, or the use of loans.
Equity Line
Did you know you can use your home equity for buying a business? It is much easier to borrow from home equity than acquiring a business loan. An added advantage of this is that the interest on an equity line is deductible on your personal tax return. Most SBA loans require you to put your house as collateral anyway. So it makes sense to borrow money against home equity to buy a business; it saves time and money.
Loans from Friends and Family
One easy and flexible way for getting business finance is friends and family. Approached in the right way, this type of funding can provide a fast, affordable solution to your loan requirements.

Benefits
Friends and family are more likely to be able to offer you a low interest or no-interest loan. The advantage of borrowing from known people is that they will probably consider lending over a longer period and may be willing to adjust the terms of the loan. They will also be a good judge of your character and are less likely to need a detailed business plan from you.

Avoiding Problems
The only problem with borrowing from friends and family is that in case of a problem, the relationship is endangered. Such problems in informal arrangements can be avoided by getting some professional advice before you approach friends and family for funding. Also, a well thought-out business case and plan will give the lender a picture of how your business is doing and how their money will be put to use. Be open about the risks involved and outline worst-case scenarios.

Draw up a formal agreement between both parties involved. Setting down terms of the loan in writing will avoid the misunderstandings that often arise as a result of verbal agreements. Include details like tax implications, projected earnings etc. for both parties.
 

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