Those interested in how to buy a restaurant tune in to the Dishing with Donna show on AM920 for an update from Atlanta restaurant brokers, Eric and Robin Gagnon. Learn how one new buyer thought she didn't have enough money to open but now has a restaurant of her own.
Finding the money to buy a restaurant can be tricky but here are some of the ways our buyers make it happen.
Conventional Bank Loan or SBA Loan
Lenders typically require three years of P&L's and Tax Returns for restaurant loans. The process for an SBA loan is often lengthy (three to four months) and the business must be under contract in order to begin the process. This is not the way to go if you're buying a business without pristine books and records.
Home Equity Loan
Self finance your restaurant purchase through the equity in your home. Once you own the restaurant business you can often apply for a line of credit with the bank to pay yourself back or factor your credit card accounts receivable to generate a line of credit.
401K or Retirement Plans
There are tax free methods to use your 401K or retirement plan for the purchase of a business. We can put you in touch with lenders that specialize in this. Click on this link for information on converting your 401K to funds for your purchase.
Borrow from Friends and Family
Sell shares in your business to friends and family to raise capital for your purchase. Make sure you set up the correct paperwork and offer a fair return on their money.