Points to remember…from a 40+ year banker
- When buying a business one typically arranges for the financing of the purchase with a bank, preferably a local bank.
- It is important not to overlook the fact that an operating loan may be needed for certain times during the year. The buyer will need to work with his accountant and banker to determine when those funds will be needed.
- In many cases, the seller may have cash reserves to use when sales fluctuate during the year. This may not be the case with the buyer.
- Please give me a call if you are thinking about buying or selling a business.