So you’re looking at buying a business. When is the right time to start thinking about business finance? Before you look? After you have made an offer? After the initial visit?
Obviously, it is important to have an understanding of what finance might be available before you begin your journey. There is no point spending months of time and effort looking at businesses which are completely unaffordable.
Appling before making an offer can have its advantages. It can put you in a stronger negotiating position. Having proof of finance strengthens your hand and reassures the vendor that you are a serious buyer. It also means that you don’t start spending money on solicitors and other costs before you know that finance is achievable.
The other alternative is to wait until an offer has been accepted. This way you know the business process will go through providing the finance does, so there is a chance of the process moving quickly form here.
There is no single right time to apply for finance – it will depend on your personal circumstances and the business in question. However, when you know that you can speak to the same individual, from initial questions, right through to loan completion, there is no downside to finding out what is right for you.