FREQUENTLY ASKED QUESTIONS

 What is the main reason that businesses fail?

Though there are several factors that could effect a business failing. Not understanding the entire process of buying,operating and marketing a business as well as not having a business plan are some of the main reasons why businesses fail.


How do I obtain financing to purchase a business?


For the most part, lenders look at 3 things.

  • The buyers experience in the business that they are interested in buying.
  • How will the business be able to service the loan?
  • What investment is the buyer putting into the purchase of the business?

Most banks lend money only on the assets of the business. Say if the business has equipment and assets of 100,000. Most banks will depreciate the appraised value by 30% and then lend up to 70% of the value of the assets and usually offer no value for sales/goodwill. All lenders have different criteria so it is good business to investigate a few different lenders to compare.

Other possible sources of financing may be

BDC

Canadian Small Business Loan Program

Home Equity loan


What is the process when buying a business?

Purchasing a business is probably one of the biggest investments that you and your family will make.Contact Terry. He will be more than happy to work with you towards your goal of becoming a business owner. 


Thanks for visiting.

Terry Chang 
The Real Estate Company
403.270.4060
Email: terrychang@telus.net
Websites: www.terrychang.com  

Hours:
Mon - Fri 8am to 6pm
Sat and Sun. By Appointment only