I wish it were possible to buy any business with no money down. Yes, it does happen occasionally, but it is not the norm. Anyone who tells you otherwise is simply misleading you. Don’t get me wrong,
At the same time, I see many buyers who are counting on an associate, family member or other investor to assist them in financing the purchase of a business. You must realize that sellers will naturally be apprehensive about this type of situation, and so too will any broker.
Similarly, having this instrument in place will provide you with confidence that the investor will be there when you need them. It is very easy for people to tell you they will back you financially, but far too often their words become meaningless promises when the time arrives for them to write the check.
As a final note,
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