Need some direction trying to find a business loan to buy part ownership of a Restraunt and Bar? Any help is appreciated

It all depends on many questions, the most important of which is how much money are you looking for?

Assuming that this is a going concern and the investment is to become a passive investor, I would probably tap some of my real estate equity and use my personal income as the source of repayment. I would do that in order to get one of the cheapest sources of money out there as well as having to jump through the hoops that I would need to jump into in order to get the loan based on the business performance.

If you look at this from the point of view of a lender, this is a transaction that does not benefit the business itself, and is mostly investment financing. {I am assuming that the current owner will be getting the money and that it is not staying in the business}.

Things can get complicated and your best bet would be to sit down with a community lender and go over the deal. Take some of the financial information that you have on the business with you as well as your own financial information. At the very least, the lender can point you on the right direction.

David,

You need to provide more information for your loan requirements.

The few questions are:

1. How good is your credit?
2. Will the restaurant be your sole source of income or will you have additional income?
3. Is the restaurant a going concern( been in existance for more than 2 years) or is it a new business?
4. What is the purchase price?
5. The resturant functions in a leased space or is it owned property?
6. Since its a barm will you intend to buy the liquor license from the current owner?
7. What is your experience in running a restaurant?

These are just a few general questions to get a feel for your financial requirements. If you employ minority workers or women, or even have a woman as a partner in buying this business, you could qualify for an SBA Loan.
The options are endless, if you structure a deal well.
So please answer these basic questions and someone will be able to help.
Good Luck!
Riti Madugula
SVP