Greetings, fellow businessers! :) I am new to this forum and already it has been a wealth of information!
I'm still somewhat new to the small business world and I would love some advice. My boss is getting ready to retire I have an opportunity to buy the small tech business I currently work for. The actual cost of buying the business will be financed through the current owner, but the owner want's to see that my business partner and I can secure the necessary line(s) of credit to operate the business (to handle cashflow fluctuations and carrying customers on net terms) before we can proceed. The target is a minimum of $200K available credit -- ideally $300K.
My question is this: What would be a reasonable way to go about this? I understand that this credit is critical to successfully operating this business, but how can I go about getting that much credit to operate a business when I don't have any legal ownership of the business? Is this a common expectation when acquiring a small business?
I have already tried talking to two banks, one national and one local, but they have been vague and very slow to respond. Mostly I want to make sure I have realistic expectations going into this since I don't really have a point of reference currently.
Thank you in advance for your help!
I'm still somewhat new to the small business world and I would love some advice. My boss is getting ready to retire I have an opportunity to buy the small tech business I currently work for. The actual cost of buying the business will be financed through the current owner, but the owner want's to see that my business partner and I can secure the necessary line(s) of credit to operate the business (to handle cashflow fluctuations and carrying customers on net terms) before we can proceed. The target is a minimum of $200K available credit -- ideally $300K.
My question is this: What would be a reasonable way to go about this? I understand that this credit is critical to successfully operating this business, but how can I go about getting that much credit to operate a business when I don't have any legal ownership of the business? Is this a common expectation when acquiring a small business?
I have already tried talking to two banks, one national and one local, but they have been vague and very slow to respond. Mostly I want to make sure I have realistic expectations going into this since I don't really have a point of reference currently.
Thank you in advance for your help!
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