HOW MUCH CASH OR DOWN PAYMENT DO I NEED IN ORDER TO BUY A BUSINESS?

The amount of liquid or unencumbered cash is very relevant in the process of buying a business. It is important to realize that items such as cash flow, inventory, and closing costs, initial marketing costs all have impact to the down payment of each business. A general rule of thumb is 50% of the selling price in cash is required to be in the ýball parký of making a deal.

WHAT DOES A BALANCE OF SALE MEAN?

A balance of sale or Vendor financing is based on the owner accepting an amount of the purchase price over time. The term can range from 6 months to as long as 60 months. It may have no interest or it can be even higher than the prime rates. The balance of sale is a mechanism for any short fall of cash by a purchaser but it also provides sense of security for the purchaser and a back up by the vendor.

DOES ACTIVE BUSINESS WORK WITH THE BANKS FOR FINANCING?

Active Business works with the Small Business Loan program provided by the Government of Canada that is administrated by the chartered banks. The small business loan is an excellent vehicle for purchasers focused on an acquisition of assets. Please note however that many rules and regulations apply to the Small Business Loan and acceptance is based on a specific business plan. Active Business helps its clients obtain between 25 and 75 Small Business loans per year.

APPLICATION OF BUSINESS

In order to obtain Names and Addresses of the businesses posted on Actives Web site: please press FORMS AND DOCUMENTS and go to the APPLICATION OF BUSINESS form; Print, Sign and Select the file number; Fax the Application to our office at 514-735-1371 and you will obtain the the information you have requested. No application will be processed unless duly signed.