Can you buy a business with no money?
Buying a business with no money means a few things. Firstly, the business being sold may have seller's finance included, so you pay the seller back as you operate the business. There is usually a ‘buy-out’ phase where you pay it off over a certain period with income from the business. The money will still be paid. Secondly, obtaining a loan from a mortgage company or bank to buy the business; this will still need to be repaid. Thirdly, buying a business that isn't very profitable, and the owner wants to offload their liabilities and is willing to sell for a minimum. This type of business is usually struggling and may have debts. It takes a lot of business experience to determine if it is fixable or a lost cause.
So you can buy a business with no money, but there are still obligations to repay any money you borrow or to fix any liabilities you may take on. Owning a business is a lot about managing cash-flow and budgets. The idea of owning a business always sounds fun, but it's also about your capabilities, experience and how much income you want to generate. Unlike owning a home, a business signs you onto liabilities such as leases, stock, payroll, taxes etc.
Tags: businessesforsale
