Discover the different professional loan solutions to finance the takeover of a business and in particular a business.
Prepare for recovery, choose the right financing
A business takeover project requires good preparation, both on the assessment of the business activity but also on the development axes to be implemented. It is obviously necessary to have the financial capacity and if the buyer does not have all of the sums, he will need to have some equity to reassure the financial institutions. It is estimated that a minimum of 20% contribution is required to obtain professional credit. This criterion will however change depending on the economic context but also the field of activity.
On the credit side, there are different solutions to carry out this business recovery project. There are essentially two loans intended for buyers, the seller loan set up with the transferor of the business directly and the professional loan, a consumer credit obtained from banks, either directly or through a broker. specialized in the financing of professional projects. Note that these loans can be combined with public aid (local, regional) but also with an honorary loan, financing without surety and without guarantee but capped.
Request a seller credit
The seller loan is a loan set up as part of a business takeover, whether it is a business or not. It is the assignor who will grant a loan directly to the buyer, the latter will set up a contract providing for the terms of repayment. Generally, this loan is accompanied by equity on the part of the buyer, equity will represent the major part of the acquisition price of the company, the rest being set up with the seller loan. In practice, this is often a loan made with a known buyer, either a family member or employees wishing to take over the business from their employer.
Apply for a professional loan
The bank loan is a consumer credit that the purchaser will request from the banks, it can be a traditional bank as well as a bank specialized in lending to businesses. This loan can not extend over a period of more than 7 years, it will generally require a personal contribution from the purchaser in equity and a guarantee, either in the form of a bond, or in the form of mortgage. It is often advisable to live on the rates but not only, it is also necessary to study the fees and the terms of guarantees required by the banks.