About To Loose It all

nelson75

I`m looking for some creative ideas, I have been involved in an automotive buisness with my good friend Bob for the past 3 years.  Bob is having some health issues and is going to need to get out of the buisness.  Bob owns the business and I run the buisness.  When we purchased the buisness it was not doing so well, we lost 50K the first year.  Going into our forth year of buisness this spring things are looking well, we are projecting a profit of 80K  Bob needs out and would like me to purchase the buisness from him, he wants 150K for the buisness witch is about what we paid for it, we have not made much money yet, but have paid off most of the debt we inherited with the buisness.  He is willing to carry the bulk of the contract (100K)personally, but needs 50K in cash for the transition. Here is the problem, I`m of very limited means, I`m trying to recover from a finacially damaging divorce, and have to get by on what I know and love, and that is running a buisness.  I need to generate 50K, i`m not able to get a standard small buisness loan.  I have about 100K in equiptment in the buisness, I have heard there are companys that will loan funds, using the equiptment as collateral?  I need to know if anyone has heard of this, or know were to find more infomation.  Thanks for you time and any assistance any of you can help with.  If I`m not able to generate funds, he will be forced to sell the buisness, I feel like this is my one chance to finnaly take the steps to owning my own buisness and running with it. 

rvdebby

I am guessing that you have a car lot... have you checked into flooring companies to get some of your inventory on credit. Be careful the rates can be high. Are you a member of your IADA? They will have associate members that may be able to help--AND they will have other companies in the industry that will mentor you.
Good Luck

nelson75

Our buisness is actually automotive repair, and we have a U-Haul Dealership at our location as well

robertj

Nelson,
He owns the business but you own the equipment - is that correct?
Or does the business own the equipment?
 
Robert Johnson
 

nelson75

The buisness owns the equiptment, we when we purchased the buisness, there were leases on all of it, and we have spent the last 3 years paying it all off, since it is now paid off he suggested I may be able to use that to get a loan.

robertj

There are ways to get loans for your companies equipment - the amount someone is willing to lend will depend upon the value of the equipment.
If you want to pursue this avenue - contact me directly at Robert@bizgropwthmasters.com</A> and I`ll give you the names of a couple of people who work in that arena.
Robert Johnson