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How much of a down payment will i need for a $100,000 restaurant that is for sale? How long would that loan b

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Answers (2)
Pete Harrison
Legacy Venture Group USA, Inc.
FL
Premium Broker

Hi Geroge,

Have you verified the #'s on what the restaurant is making. Usually the bast way is through the sales tax.
How old is the equipment? That 100K restaurant may or may not be worth 100K especially if it is not profitable. I have sold over 200 restaurants since 2001 and can go through them pretty quickly. Visit my web site and i will send you some helpful articles about financing for restaurants.

Jan 2, 2011
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The BAF Group LLC
MD

Do you have experience? Is it a franchise or unbranded restaurant? Are you getting funding from the SBA (tough to do for restaurants,) or is the Seller financing?

With SBA, if you have experience, you MAY be able to get in with 10% down. If the Seller is financing, it is negotiable between him and you. However, he may ask for 50% down or so. It can be all over the board!

As for the term, it could go a little as three years, or as long as ten. You may get a ten year amortization from the Seller with a two year balloon.

There is no way of telling without more information. And much of it is, as said before, negotiable between you and the Seller.

Jan 1, 2011

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