Buying a yogurt shop for sale and running a successful business starts with financing. The capital investment required to buy a yogurt shop for sale can doom a business from the start with difficult repayment terms. Many business owners put themselves in a financial hole that is difficult to dig out of if they are underfunded or are paying back a loan on complex terms. Roughly 10% of business purchases are all cash deals, but the overwhelming majority are financed in some way. They key to a successful business when buying a yogurt shop for sale is to finance the right way and not just "some way".
Financing A Yogurt Shop For Sale In Today's Credit Market
Even today, credit can be difficult to secure for a total 100% finance on a purchase. Many traditional bank loans will require non-business collateral that will often equal the value of the yogurt shop for sale. A popular misconception about the Small Business Administration is that they offer loans. The SBA only guarantees the loans made by lenders to help mitigate risk. However, the usual problems with securing a loan are still in effect. One of the most effective methods for financing a yogurt shop for sale in today's market conditions is through seller financing.
Leveraging Seller Financing To Purchase A Quality Yogurt Shop For Sale
Seller financing offers many benefits, and it is becoming increasingly more common due to the hurdles in the way of traditional loans. Seller financing today can typically cover anywhere from 30% up to 70% of the total purchase price of a yogurt shop for sale.
From the buyer's perspective, seller financing is a good sign. A seller that wants to finance their own sale shows confidence that the yogurt shop for sale is a solid business that will continue to be profitable. Otherwise, why would they want to remain financially attached after the sale?
When it comes to financing terms, buyers can expect to pay between 5% and 8% interest over the life of the loan. Best of all, buyers have the option to be much more flexible on the terms than with a bank. For example, deferring the first 3 months' payments, make the first year's payments all principal, or arrange for no prepayment penalties. Best of all, the need for collateral is nearly removed since the seller's lien is against the business and not the buyer personally.
Consider seller financing when looking for a yogurt shop for sale in order to position the business to be profitable right from the start.
Looking to buy a yogurt business? See all yogurt shop businesses for sale in California - or sell a yogurt business and reach thousands of yogurt shop buyers. Also keep up to speed on the California yogurt store news (with industry business brokers & experts) with upcoming BizBen Online Webinars.
About The Author: Peter Siegel, MBA is the Founder of BizBen.com (established 1994 - 9000+ California businesses for sale, 200 new listings daily) and the Director of the BizBen Network - Peter Siegel, MBA can be reached direct at 866-270-6278 to discuss selling a yogurt shop, financing a yogurt shop purchase, or buying a California yogurt store.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Prabhjot Randhawa, Broker: SF Bay Area, Northern Central Valley
I'm a Business Advisor at Liberty Business Advisors of San Fransisco. I have over 20 years of experience in all phases of entrepreneurship. During the past 15 years my concentration has been in business of mergers and consulting. I have owned and operated over 10 businesses.
|Michael Floorman, Business Broker, BTI, San Francisco Bay Area
Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Ron Hottes, Broker - Serving LA, Orange, Inland Empire Area
LINK Business is a business brokerage team of 28 highly skilled and seasoned professionals. Our business brokers have over 100 years of cumulative experience & the expertise to help you buy or sell a business in the LA County, Orange, Inland Empire areas. Call Ron for a consultation at 310-539-8300.
|Joe Ranieri, Business Broker, Orange County Area
Having owned retail/restaurant businesses for over 20 years, my interest turned to listing and selling businesses rather than owning them. I specialize tend to specialize in Orange County high volume restaurants, fast food independents and chains, bars and liquor stores. Call 714-292-5448.
|Elizabeth McGovern: Escrow Services - SF Bay Area
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
|William Park, Business Broker - Southern California
Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.
|Ryan Clark, Business Broker, Southern California
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.
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