It’s a common misconception that starting a business means doing lots of hard work yourself. In truth, you don’t always have to start from scratch.
Some of the most successful business owners didn’t start with their own business – in many cases, they bought one that already existed.
But when you’re just starting and don’t have a spare £50,000 to hand, the idea of buying a business might seem as much of a pipe dream as owning a Rolls Royce.
Applying for a small business loan can make it much faster and easier to become established than you probably imagine. Read on as we dig deeper.
The benefits of buying a business
Buying an existing business can be a faster and more secure way for a budding entrepreneur, particularly compared to starting up on your own. Stats indicate that 20% of businesses fail within their first year, with that number increasing to 60% in three years.
By buying a business with strong cash flow and an established customer base, that risk is reduced significantly.
Existing businesses that are put up for sale are a finance-friendly way to get started in business. Not only will one already have its premises, but it also comes with an established brand and existing customer base.
The price for buying a business upfront may seem steep, but in the long run, it can be a far more financially viable option.
And any business worth buying will likely have a predictable future income, making management of cash flow far easier.
The risks of buying a business
There are several risks involved with buying a business that you need to consider carefully before proceeding:
Taking on old problems
Existing issues at a business won’t magically disappear just because there’s a new owner. You could face challenging managerial problems, and any previous reputation or customer service issues become your responsibility.
Business may require further investment
When you buy a business, you’ll have your own new ideas of how you want to do things. Perhaps you’ll want to upgrade outdated equipment or launch a new website. Your funds might not be enough to cover everything you want.
No guarantee of customer loyalty
Everyone has their own reasons for supporting a particular business – it could just be that the previous boss was a family member. Therefore, there’s no guarantee that existing customers will stick around with you in charge.
How to apply for a loan to buy a business
So, you’ve identified a business you’d like to buy. Perhaps the owners have told you they want to retire, or they’re wanting to launch a different business themselves. But their asking price is far beyond what you can currently afford. What should you do?
Applying for a small business loan is a perfect solution, and the good news is that we’re able to help you today.
Funding Triangle can provide a small business loan to buy a business without the usual hassle and delays. We lend amounts between £10,000 to £500,000 with rates as low as 4.8%. There’s no need for security or assets, and the money could be with you in as little as 24-48 hours thanks to same-day approval.
