There are quite a lot of businesses out there that are worth buying. They are financially stable, have huge following and the products are of great quality. Of course, they are pegged at a higher value. You still want this kind of business though. You know that with proper management, you can still grow it.
The good thing is that you just need to find the right type of funds to buy the business. Once you have secured the money you need, you can pursue this business and steer it to a positive direction moving forward.
There are established banks and lending firms that can provide loans. They can even give you a huge amount that is enough for you to secure the business you want to buy. The only down side is that there are a lot of requirements before your loan application is approved. They might even deny your application even if you felt like you have already given them everything that is required. Add to that the high interest rates. Finding the right bank with reasonable terms would be great.
This is not highly advised but you can give it a try if you are already desperate to get a loan. Collateral means the property or valuable item that the banks or firms could take away from you if you have failed to repay the dues on time. This is not encouraged since you could lose something really big. However, if you are sure that the business will do well and you can repay the loans in time, nothing should stop you from bringing collateral to the table.
Negotiate the price
This is not a funding source but a strategy for you to afford the business. Perhaps, it can be lowered to a certain value and your current funds are enough to pay for it. You just have to use the best words to ensure that the deal will be closed based on your terms.
The good thing about SBA financing is that you increase your chances of getting a loan. SBA itself does not provide the loan, but they can back you up when you apply for loans in banks and lending firms. If you have defaulted on your loans. SBA will be responsible in paying these banks. However, SBA is quite strict. The terms might not be too favourable for you. This is a good option though if you have a bad credit score.