What to Do If You Need Money to Buy a Small Business in South Africa
Do you want to buy a business, but do not have the entire amount available in cash? Although many buyers have the total amount available because they have sold their houses or have received retrenchment packages, just as many cannot afford to buy a business out of pocket.
The best advice is to first reduce debt exposure and build a solid credit record. Once at that level, consider saving up a deposit and working capital. If you have such available, it shows that you can invest in the business.
Financial institutions consider the assets of a business, in addition to its trading history, when reviewing a loan application. Factors such as how many times the entity has been sold, supplier credibility, competition, customer base, type of product or service, the sector, lease agreement in place, and the assets available as collateral are considered. To this end, you need to draft a business plan indicating the above information, as well as the financial projections and potential of the entity.
Fortunately, when you buy a business through us, you already have the necessary information to make an informed decision and can use this in your loan application.
To gain access to the full information on any of the entities listed on our website, register as a buyer. By doing so, you can also provide information that will help you qualify as a buyer. This furthermore helps to ensure that you find the perfect business that suits your interests, location needs, income generating capacity, sector interest, budget, skills, and experience.
Our brokers assess every entity and provide accurate information to help you make an informed decision as to whether or not to buy a business at a particular location. We also provide the necessary information to help you determine whether you can afford to do so in cash or need financial assistance or investor funding.
Keep in mind that investors, franchisors, and banks consider the skills of the owner or operator regarding the management of a particular type of entity. To this end, prepare a CV to show your experience, skills, qualifications, and achievements relevant to the particular operations and industry.
If you have little or no security for a loan, the financial statements of the entity, your own credit history, and your skills are extremely important. If you are interested in buying a fuel station, for instance, attend one of the readiness training programmes. If you want to purchase a restaurant, attend an ownership or management course in order to get a better understanding of what the operation entails. A little bit of work beforehand can help you make the grade when having to get investor funding.
Ask a friend or colleague who has available funds to become a partner or shareholder. In this way, it is possible to get the deposit and working capital required when applying for a loan. Give us a call or register online if you want to buy a business and benefit from our professional assistance in finding suitable opportunities.