Buy a Business – Unknown Ways to Finance a Business Acquisition
This is a great time to buy. You may have heard that real estate prices are possibly at an all time low and that there are bargains out there. This is probably true in most areas.
It is also a great time to buy existing businesses. Many baby-boomer owners are ready to retire. Some want to back out slowly, earn a little income and hand off their ‘baby’. Others want to get their dough and retire. In many cases, you can acquire a business using a SBA loan. I’ve financed many, many good deals.
However, there are cases, especially in these tougher times, where the buyer’s credit has weakened. Or perhaps a viable business with years of success has had a drop in trends due to the economy. Maybe the buyer doesn’t have enough of a down payment. Or maybe for some reason, the business just can’t be financed.
So what can you do if a bank doesn’t supply the money? You can work with certain companies that will set up a C-corp and rollover your IRA or 401k so that you can then invest in or finance your business using some or all of your 401k or IRA funds. You don’t have to use them all and you can still invest in stock, bonds, etc. But the great part is that you can use these retirement funds towards any expenses in the business – equipment, working capital, a purchase. What a great way to build in your future and invest in the best. You have no control over the stock market but you do have control over your own business. The other great part is that you don’t incur the withdrawal penalty or tax implications like you would if you just pulled the money out of the 401k or IRA. It is a great solution.
There is another way you can buy a business, regardless whether you can get financing or regardless whether the business can be financed. A company offers a specialized, flexible solution that is actually a little different with each business and each situation. It can be used to buy out a partner, to buy a business completely, and a buyer can get in with very little money down. The system protect both the buyer and seller because it uses a third part CPA which keeps everyone honest. Sellers like it because there can’t be a delinquent payment and there are so many ways to protect the seller and give him/her a heads-up if the business is having trouble. Buyers benefit because they can get in for less, buy equity over time, and if the business does better, they can pay it off sooner and earn more. This Diversified Business Concepts program can be applied to situations where a seller wants passive income, wants to slowly back off, or where a buyer is fresh out of school.
There are many other ways to go for the dream. There are many other ways to find dough for the dream. I talk about these more in my eBook and on my podcasts. Just keep focused on the right business for you and keep taking action to make it happen. There is a way to get your dream funded.