If a business seller is agreeing for a VTB then it also means that his numbers are fudged or there is no demand for his business.
I would stay away from such a business..
Quote:
Originally posted by Blue_Peafowl
If you really like business but short for money on down payment then you should consider asking VTB’s
Sometime borrowers (buyers) who do not have sufficient assets to make the necessary down payment in that case you should try for VTB-( Vendor Take Backs ) VTBs are when you obtain a loan from a bank or financial institution and the seller gives you a loan for the down payment.
Payment arrangement can be discussed with seller ( usually you make monthly payments, or lump sum payment
NOTE: not all the business owner agree with that but if you really are seriouse then you can try for it -( some case its works) - specially if you have good brokers working for you , who can negotiate .
Location: Brampton, Ont, Canada
Posted on: 19-10-10 13:35:33
Yes, u are right at some point... but there could be other reason as well... Having a good business but not finding buyer in limted time - may be one reason
Sometime you work though process for long time and deal get stuck for few thousand dollars... in that case seller will agree at VTB instead looking for other buyer… etc....
So not all VTB deals are bad - BUT you are right buyer should be more concern for this kind of deal. Beside VTB’s are in favor of both parties – buyer who has enough money does not need to think about VTB deals (qualified buyers will have so many options open for them) but not everyone has all the money. – so they have to go with calculated risk
Note: I have seen VTB deals with good successful business ( this is the most common practice for many buyers )
Quote:
Originally posted by dudewheresmycar
If a business seller is agreeing for a VTB then it also means that his numbers are fudged or there is no demand for his business.
I would stay away from such a business..
Quote:
Originally posted by Blue_Peafowl
If you really like business but short for money on down payment then you should consider asking VTB’s
Sometime borrowers (buyers) who do not have sufficient assets to make the necessary down payment in that case you should try for VTB-( Vendor Take Backs ) VTBs are when you obtain a loan from a bank or financial institution and the seller gives you a loan for the down payment.
Payment arrangement can be discussed with seller ( usually you make monthly payments, or lump sum payment
NOTE: not all the business owner agree with that but if you really are seriouse then you can try for it -( some case its works) - specially if you have good brokers working for you , who can negotiate .
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Location: Western Hemisphere
Posted on: 27-10-10 12:01:59
Quote:
Originally posted by Bingo
Quote:
Originally posted by dimple2001
Quote:
Originally posted by Bingo
How is your business hunt in Windsor going on Did u find something..?
Yes, I did. If and when the deal closes successfully which would be another 2 to 4 months at least, I'll post my experience.
Great ,Congrats.
The deal fell apart. Upon reviewing the financials, the seller wasn't able to substantiate several discrepancies and I decided to pull out. But, for the benefit of other CDs, I will post a very detailed message on the process of business acquisition based on my experience (until the point the deal fell apart). Look for a separate thread.
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Dimple2001
Hi meitsme,
We also have a family who is looking to start up a business in commercial properties, with many shareholders, who are willing to invest. We can also provide you with details about opening up a real-estate business including business plans, startup financing, and other details, due to our connections with banks and financiers. Also, I am a CA student, at a prominent Canadian university, so I have access to all of the financial and investment information you might need . Could you email me your contact information, so I can get in touch with you soon? Please let me know
Regards,
Rishav
You should also think about how your bookkeeping, accounting, and taxation is going to be handled. Are you familiar with bookkeeping and maintaining a ledger of accounts? And what about filing tax returns for your business?
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