I am looking into buying a business. It has been owned for the past 10 years and is being sold due to retirement. It has a healthy profit and turnover. If I had 20k to put down is there a chance a bank would lend me a further 60k without putting a house as security? Or would that be a definite for such a high loan amount? My husband has a secure well paid job and I am currently self employed in another business sector. I realise I need to go and speak with the bank for accurate information but wondered if anyone could give me an idea. Any info would be greatly received.
I borrowed £130,000 to buy out a partner last year. I had to put up £30,000 of my own money. I had 7 years proven track record in the industry and had to provide a detailed 2 year business plan and a 5 year outline plan including projected accounts. The money came on the 'fit to lend' program. It took around 3 months to secure the loan and I did have to jump through hoops having life insurance for the value of the loan and permanent health insurance for the monthly payment value all of which the bank has a deed of trust for so the money goes straight to them. Because of my track record I didn't have to secure the loan on the house, but without a track record it maybe different.