🫱‍🫲 How to Vendor Finance your Acquisition?

Plus 7 most interesting businesses for sale this week...

Author

Sam Bass
August 07, 2023

Good morning business buyers, can you feel the tingling excitement in the atmosphere?

It might be your potential new business in this email.

Or it might be the Franchising Expo coming this weekend in Sydney.

Get your free ticket with the coupon code at the bottom of this email.

This week we had 276 new businesses listed.

So today we break down:

  • How to use Vendor Financing in your deals?

  • Join us at the Franchising Expo in Sydney this weekend?

  • Plus the 7 most interesting new businesses this week 👇

7 Most Interesting Business For Sale this Week:

Waterproofing and Tiling Business on Gold Coast $445k

Specialising in the Waterproofing of Retaining Walls, Roof Tops, Balconies, Bathrooms and all Internal Wet Areas.
Owner works 5 days per week in the office and has plenty of time off during the year.

Houseboat Hire Business on Bribie Island $425k

Income and lifestyle in an idyllic location or a passive investment. Located on the Pumicestone Passage a spectacular waterway that offers a sheltered recreational area perfect for boating, fishing and swimming

90 year old Barber Shop in Brisbane $95k

Turnover $5,000+ per week with Net profit inc Owner wage $100k+.
Only 3 operators since it’s inception talks to the viability and longevity of this business.

Craft Brewery & Smokehouse in Newcastle $2.45m

One of Australia's most popular pastimes is combined in a market leading, architecturally designed modern CRAFT Brewery & Smokehouse.
EOFY2022 Revenue over $2,000,000
Included assets at market valuation of $2,000,000.

Earthmoving Civil Contractors Hire Services in Sydney $1m

This earthmoving civil contractor business is proudly helps councils, builders, developers, homeowners, tradies and various charity groups for over 25 years with more than 100 pieces of plant and equipment for emergency, short and long term hire.

Flooring Store in Bundaberg $900k

The business specializes in providing top-quality flooring solutions, offering a wide range of carpets, vinyl, laminates, and timber flooring options.
The business comes with a dedicated team.

Sports & Outdoor Store in Manjimup, WA $795k

Located in the heart of the Southern Forest Region of Western Australia, surrounded by beautiful forests and farmland.
The town boasts magnificent competition Mountain Bike and walking trails, excellent camping and 4WD areas, Rivers, as well as only one hour from the coast with fabulous Fishing.

How to use Vendor Financing in your deals?

Only rich people can just go and "buy a business" right? Nope!

Vendor Finance is one popular option you have, to help you finance, your ideal business acquisition.

Imagine you're buying a car from a friend. Instead of getting a loan from the bank, your friend says, "Hey, just give me a down payment now, and you can pay me the rest over the next couple of years."

So, you make a deal to pay a bit every month until you've paid off the full amount. This way, you get the car now, and your friend gets a bit more money over time, including some extra for letting you pay over time.

Now, apply that idea to buying a business.

Vendor financing when buying a business is pretty much the same concept. Instead of getting a loan from a bank to buy a business, the current owner (the seller) lets you pay them directly over time. You give them a portion of the money upfront (a down payment) and then pay the rest in instalments, usually with a bit of interest.

Here are some of the cool perks for the buyer:

  1. Easier Checkout: Just like an express lane in a store, seller financing can be quicker and smoother than waiting in line at a bank. You might not need all that paperwork and time banks ask for if you try to apply for a loan through your bank. (Reply to this email with “bank” if you need help finding a bank friendly to acquisitions and I can share some suggestions)

  2. Friendlier Terms: Imagine if you could negotiate how much pocket money you give and when? That's the beauty here. You and the seller can chat and come up with payment plans that work for both of you creating a win, win agreement. This is one of the reasons why it is so important to build a great relationship with the seller.

  3. Save Money: With seller financing, you might be able to skip some of the admin fees banks usually charge, so you keep more money in your pocket.

  4. More Choices: Think of it like being able to buy a toy even if it's not on the shelf at the big stores. Some businesses might not qualify for bank loans, but with seller financing, you can still buy them. This often applies to online businesses or businesses that don’t include a large amount of Real Estate as collateral.

  5. A Helping Hand: It's like having a friend guide you on how to play a new game. The seller, who knows the business inside-out, might offer advice or help during the transition, since they have a vested interest in seeing you succeed.

The best Vendor Financing terms, make the deal a win, win. How does that work? What is in it for the seller?

Find out what the seller gets, how the best buyers ask for vendor financing and when you should ask:

Business For Sale around Australia

Ever dreamt of calling the shots and running your own show?

Join us at the Franchising Expo in Sydney this weekend.

Get up close and personal with top franchise bigwigs, mingle with rockstar franchisees, uncover some golden business gems, and make friends with other savvy small business gurus.

And guess what? The Sydney Expo has got daily workshops and free seminars that’ll sprinkle you with all the knowledge you need to kickstart your biz journey.

This is THE moment you’ve been waiting for to make those entrepreneur dreams come to life.

🗓 When? Saturday 12th August 2023 & Sunday 13th August 2023
🕙 Time? 10am-5pm, be there or be square!
📍 Where? ICC Sydney, Darling Harbour, Hall 7 (You can't miss it!)

Use the coupon: “BFS” to reserve your FREE ticket and join the excitement:

Franchising Expo Sydney 2023

The Franchising & Business Opportunities Expo will help turn your business ambitions into action.

Till next Tuesday!
Sam from Business For Sale