Financing the Purchase of an Existing Website :: Sell Websites Buy Websites

Financing the Purchase of an Existing WebsiteReprinted with permission of VotanWeb.comIf youre thinking about buying a website, youll be pleased to learn that financing the purchase is generally quite easy. In fact, its far simpler to get the money you need to buy an existing website than it is for a start up. Most people simply dont realize how to do it. Dont get the wrong idea youre not going to buy a business, at least a good one, with no money down that only happens in the infomercials on TV. Many prospective website buyers mistakenly believe that traditional lenders will take them with open arms when they present them with a website theyre looking to acquire. Unfortunately, nothing can be farther from the truth. It still amazes me how the banks have got most people fooled. They run these expectant ad campaigns promoting themselves as business friendly but try to get them to lend you money to buy a website. It wont happen. It doesnt matter how experienced you ar, or what your kindred is with them. Unless youre prepared to collateralize the loan 100% with personal liquid assets, they arent going to give you a penny. So dont waste your time seeing them. With the terms they offer, its sound not worth it. The Small Business Administration does NOT lend money for people to buy businesses. The SBA guarantees loans made by lenders (up to a certain amount) for lower-ranking business acquisitions. There are both good and bad points to an SBA loan. The good news is that there is money available up to $1,300,000 The terms for repayment are favorable-upWhen a business passes the SBA qualifications, you can be fairly confident that it is a solid business If you do not have at least 25% equity in your home, you may not have to fully collateralize the loan. Typically, they will finance 70-80% of the deal. You may be thinking, if you can make the acquisition with 20% down, why would you even think about anything else? Heres why Many small websites wont pass the SBA r equirements The financial review is based upon the weakest of the past two or third years tax returns You must have demonstrative experience in a business that is similar to the one you are considering