What help or bank would touch me ? Supper business that's already set up too ?

Question

I have three kids girl 14 and she is great boy 11 he is also great too, I have a baby off 3 years with a rare dietry condition (PKU)..I have been helping my dad out too keep sane he is a wholesale greetings card supplier and supplies all over scotland, For the past year a business we supply has been on the market, I love it more every month when we visit, sound's lot's and lot's off money but look's so enjoyable and basically cand fail as it's reputation is already made.

It's at a Loch in Scotland. business consists off Licenced Grocer's ... Roll's Paper's Bread ect... Upstair's is a Bed & Breakfast with 5 room's There are living headquarters for the family upstair's Flat at the corner off the shop is a chip shop classy place there are lots about pubs marina's train station golf beach party's hotels ect busy place.

How could I get this place ? Where Could I get Financial help ? I would be willing to give it my all .

The asking price for the whole lot is 1 million I have no savings

Answer 1

OK, so you need a Deposit and a Business Mortgage ..

Deposit first = at a guess you need a minimium 10% (even assuming the existing stock is included in the price, you will also need some finance to keep the business 'solvant') ... I would thus suggest you need between £100,000 & £200,000 in cash .. (I expect you will have to borrow this off relatives, or go in with a Business Partner** who has assets (eg a house) that can be sold or Mortgaged to generate the cash .. )

Since I assume you have no other job (and no other income), the Mortgage will be based on the Income (profit) you can get from the Business .. this will need to be at least 4x the Mortgage .. so the Business needs to make at least £200,000 a year PBIT (Profit before Interest & Taxes) ...

To discover if this is possible,  you will need to see the past few years accounts .. assuming this is a Limited Company, the accounts will be filed at Companies House - this will also give you an insight into the outstanding liabilities of the business (if the Accounts have not been filed for the last few years, do not walk, but RUN away ...)

If the basics look 'OK' you now have to go into full details .. your Accountant needs to see the current accounts and you need to start checking for any possible 'negatives' ...

Why are they selling ? is some previous employee about to win a multi-million accident claim ? has Travel Inn just got planning permission for a 50 bed Hotel next door ? is the local mass employer about to shut down ? is the Train Station about to be closed ? is the building about to fall into the Loch ? ??? etc etc)

**PS the fact you have no savings is not good news .. if you have Credit Card debt as well, your chances are minimal .. (it suggests you are not good with money) .. if this this the case, you will need a Business Partner to 'front' the finances with the Banks .. plainly the obvious candidate is YOUR DAD :-)