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|
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Steve Zimmerman: Restaurant Broker Specialist
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 900 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker - An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Cheryl Maloney: Restaurant Broker Specialist - San Francisco
Cheryl is a business owner herself, Over 20 years bar/restaurant experience, and a law degree she's well-versed in real estate rules, regulations and best practices. She works tirelessly to create successful strategies and effective negotiations for those wishing to sell or purchase their business.
|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.
|Lee Petsas, Business Broker - Orange, San Diego Counties, Inland Empire
UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.
|Rick Carlson, Business Broker - Southern California
You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.
|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.
|Joe Ranieri, Business Broker, Orange & LA County Areas
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.
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