Find out the latest economic indicators affecting business valuations!

With the current banking/subprime crisis, lenders are hesitant to loan on business purchases. However, the cash flow generated by Kentucky Business Broker's listings tend to give comfort to lenders. Cash flow is king to them and they might request more of a down payment than normal, but lenders are always looking for a good loan and always have money for a good loan.

If you are a seller, get comfortable with the term "owner financing". The buyer nor the banker knows half as much about your business as you. It makes everyone more comfortable if the seller is willing to finance a portion of the selling price. If the seller isn't willing, both the buyer and the banker tend to get anxious about the opportunity. The banker's attitude: "if the owner won't finance a small portion, why in the heck would the bank want to finance a portion."

As the buyer, realize that owner financing means that the owner still has an interest in the business. This can be a headache at times. It is much cleaner to get the previous owner "out of the picture."

To make a long story short, the current banking crunch is healthy for everybody. The bank won't let you buy a business that won't cashflow. It tightens up all of the loose money that was available prior. Remember, there is always a lender for a good deal. Let Kentucky Business Broker help you with your upcoming business decisions.