It’s not a simple question.
Most people if they are looking to buy a business look for the business first, make an offer, have it accepted, and only then begin to think about finances.
Although that seems to make sense in some ways, it can cause problems for the buyer. Firstly, it immediately puts them under time pressure. And secondly, there is the risk that if they cannot obtain the full amount of finance, all that research and work (not to mention expense), would have been in vain!
The other way to do it is to think about finance first.
By getting the finance in place, you know how much you are able to borrow, and therefore can spend your time looking at businesses which you know you can afford. Plus there’s the added benefit of a quicker purchase, and being in a stronger position to negotiate with the vendor.
As you can see, there is no one right method. In fact, as with all forms of commercial finance, each individual and business has different requirements, and therefore should adopt a different approach. Unsure what the best course of action for you is? Speak to your local director from ASC Finance, who will be able to talk you through the options available to you.