Choosing to take over a business that has already started, making it change management, can be a great way to do business. This type of purchase of commercial activity, in fact, limits the risks of the new owner, who will take possession of a business already equipped with a loyal customer portfolio, of all the material needed to work, of the premises and of the furnishings. In any case, even not opening a new business but acquiring an existing one, the initial investment is important and, to meet the costs, it is often necessary to request a loan.

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Financial loan

On the other hand, which operate with more flexible rules and criteria, are better prepared to provide capital to new entrepreneurs who are buying a business. The documentation to be presented consists of the preliminary sales agreement, the balance sheet for the last two years of activity, the monthly average of the drawer in the last two years and the regular tax return of the previous owner of the business.

The only disadvantage, if this can be defined, is that financial institutions tend to give lower capital than those obtainable with loans or bank loans. To consider it a point against, however, we must also consider how much liquidity is necessary for the purchase: often, the proposed figures are enough to cover a large part of the investment. The advantage of the financial company is that loans for taking over businesses are approved very easily, so you can sign up for ACFA Cashflow.

For banks

The balance sheet of the existing business is not considered, very often, a sufficient guarantee to consider the loan applicant suitable. This is because it is not said that, with the new management, the earnings declared by the old owner remain the same or improve. Banking institutions provide financing to detect assets that have already been started only if the applicant proves to have an own capital, or another personal income, sufficient to cover the monthly amount of the repayment plan installments.