If you can get the owner to take back 25 - 30% of the cost as a personal loan, have an accountant look over the books and do a complete financial report, and then put together a business plan, a bank might lend you $65,000 - $70,000 of the amount. You may have to also put up a personal guarantee, meaning if the business goes under, you personally remain on the hook.

It helps that you have worked at and managed the company in the past which is a plus.

You have absolutely no chance. Apart from a well researched business plan the Bank wants to see you putting your own money in as well, they will not totally finance a new business [new to you]. You have no security to offer, no savings, no property, basically no asets. In that circumstance they would not lend you 10k never mind 100k.

Not going to work I'm afraid. We bought a catering business 9 years ago and only got a business loan because we had a huge amount of equity in our property. As the bank manager said to us ' You default, we take your house' Lending since then has tightened up even further in the UK.

Mind you, there is no harm in asking your friendly bank manager.

Hope it works out for you.

UK

Cornwall

Under your circumstances, I think the only way for you to buy the business is to have the seller finance it for you. In other words set up an agreement between the two of you to pay the seller a certain amount over a certain period of time until the business is paid for. Calculate a fair rate of interest to be included to the seller.

Be sure to get it into a written contract of sale and reviewed by an attorney.

With no savings, no other collateral, banks are not going to be willing to loan you the full amount.

Hi,

I have been approached to buy a business from a family friend who is retiring. I am completely aware of how to run the business etc, having worked and managed part of if in the past and it is a very successful business.

However, I am not familiar with financing the buy. I have no assets of my own, I don't own a house, shares, savings etc. would a business plan and the accounts from the business, as well as my income from my full time job be enough to approach the bank for money to the tune of around 100k? Or is this a ridiculous ask? If so, what would be a realistic amount they would look at lending me with the above information - obviously I know lending will depend on credit rating etc too, but I'm just looking to get an idea to see if buying the business is even a possibility for me

Thanks