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I am looking for funding to purchase a bar in Central IL.

Looking for funding to purchase a currently open existing bar in Central IL. The owner is asking $255,000. I have a very good credit score (mid 700's) Need a loan that the lender looks at what the bar is making and can make rather than what I make now. Any help or info would be great. Thanks

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Brandon,

We have started 2 businesses and sold a business - it can be done but you have seek out the right bank that knows the area/business you are purchasing. Many times they will be more likely to even consider your purchase. Send me your email and I can answer some questions privately. Thanks

May 13, 2013
William A. Price
www.growthlaw.com
Business Lawyer
DuPage County, IL

The first difficulty you'll have is more likely one of geography and industry than one of your current income. You'll need to talk to enough bank or non-bank loan sources to find one or more that is familiar with the community and comfortable with making bar and restaurant loans. The US Small Business Administration has a list of all their qualified lenders, who could make loans of up to $5 million fully guaranteed by the federal government.

You would need to know how much working capital and other money will be needed besides the sale price to make a decent profit, to show your team's succcessful experience in the industry, and to come up with at least 10% down and a sources and uses of funds statement that shows 125-150% more in cash flow than would be needed to pay off the loan. See generally Robert Morris Associates annual statement studies for the relevant ratios, and check with experienced owners on budget elements relevant to your business plan. The target business's historical cash flows, not yours, are what is relevant to this question. The target's record of having paid all taxes due, the status of the liquor license to be transferred, your experience standing on your feet for 16 hours a day and supervising minimum wage help in a hospitality business, the need for a good chef or other staff who may or may not join you after the sale, and other business and operations questions all need answers before loans or a sale can be worked out.

Hope this helps,

Bill Price
wprice@growthlaw.com

Mar 26, 2013
Clarence S. Day III
Griffin Moor International, LLP
Managing Partner
Prince Georges County, MD

We may be able to assist you Brandon,

Call our toll-free number 888.363.9375 and ask to speak with me . Please reference this website and communication.

Mar 18, 2013

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