how much down payment is required on a 600,000 business loan?
we are buying a business and was just curious as to what a down payment will be on this amount or if the gro/gas/post office/trailers would stand for the collateral on this amount. Also we was wondering if we should change the name of the business..it has been one family owner for 47 yrs and we live in a small area, just wondering if this would slow business because of fear of the unknown so to speak.! or should we ask to keep it the same name for 6 mon or so til we gradually introduce our self to the customers.7 years ago - 5 answers
Everything you asked would probably be based on where you got the business loan. Also you should keep the same name of the store as long as previous owners have no problem, then change it whenever you feel it is neccessary7 years ago
We got an SBA loan once and they required us to have 10% of the amount we were asking for. So we asked for 40,000 and they gave us 36,000. I'm at a loss as far as the name change thing. Living in a small town, it's a coin toss but I'm more inclinced to say that changing it could hurt you. And I'm not sure but I think in order to keep it the same name, you have to actually "buy" the name. Check with your state's Dept. of Business and Professional Regulation. Good luck!!!by MiMi - 7 years ago
The down payment is based on how much you can afford, how large or small you want your payments to be, what your credit is like, where you get the loan, how big of a risk the business is/was (depending on how well the previous owner did will determine this), how long your loan will be for and whether you have enough collateral to cover the amount required by the bank. All loans are given on an individual basis, meaning that there are too many differing factors to go by to really give you a true and definite answer, but like she said 10% can be a good figure to start with. As for the name change, don't change it, just let everyone know that the place is under new management, especially if the previous owner did lots of business, this also keeps some of the peole that owe you money that the previous owners had from delaying payment to you because you "do not exist" to them. If you want a rough estimate of how your payments will run and different down payments you should google a "free loan calculator" on the web. There are tons of those. Good Huntingby Amber C - 7 years ago
First of all, A loan of this amount would require (30%) down and then they would concider the other property as part collateral.But as for as changing the name I would. And dont worry about loosing customers, If you treet people in a goodway and try to give them the service they want, You will keep them comeing back.Always remember, The customers are what makes the buisness of what it is, Treet people the way you would want to be treeted.by mswildman2005 - 7 years ago
Most lenders require 20% - 30% down because they do not want to assume the whole risk. Keep the name; everyone in town knows the store.
Source(s)by Gerald S - 7 years ago