Financing a Business Acquisition

NEW YORK - March 10, 2015 - PRLog -- Financing a Business Acquisition (http://www.ubssolution.com/)

While there is no better time to purchase a business than at this moment, financing your purchase can be a daunting prospect. Scrambling to come up with the money to make your purchase may feel like your only option but the reality is there are various routes you can take to finance your purchase. Becoming familiar with the types of financing available to you can ease that overwhelming feeling.

Asset Based Financing (http://www.ubssolution.com/)

An increasingly popular source of financing is the asset-based lending. These types of loans revolve around loans being secured around available collateral. Such collateral ranges from inventory, accounts receivable, equipment, and fixed assets. The amount that can be borrowed falls in the area of 65 percent to 80 percent of the asset class.

Bank Financing

If the target company has a lot of assets, positive cash flow, and a strong profit margin then the chances of receive bank financing are great. For companies that have many receivables and short-term assets do not fare to well when applying for financing. To improve your chances, choose a bank that has a history of financing the type of business you are buying.

Seller Financing

In small or middle-market transactions, it is not uncommon for the seller to finance part of the transaction. The buyer will make a down payment and the seller will carry a promissory note for the rest of the purchase price. The business and assets will provide the collateral for the note

Equity Financing (http://www.ubssolution.com/)

Equity financing means the offer and sale of the buyer’s securities in order to raise the capital to pay the seller and provide capital for the target company. The buyer will go about this by seeking equity from private equity firms, venture capitalists, and angel investors.

Business Acquisition Loans (http://www.ubssolution.com/)

With many solutions at hand to finance your company you will be well on your way to purchasing that perfect company. Universal Business Solution know the ins and out of business financing and will help you get the loan. For more information about our services, contact us at (888)778-1437.

Universal Business Structured Solution

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