My employer is willing to finance his business to me.?
Topic: My employer is willing to finance his business to me.?
June 24, 2019 / By Amelie Question:
I am the Manager of the business and I run everything. He is wanting to retire. He said he would rent or sale the buildings to me and finance the merchandise with no down-payment if I could think of a way to insure the fact that he would get paid. He does trust me obviously but, this is business. He is very wealthy and has a lot of other interests. He just doesn't want to physically take care of the business any longer. The merchandise in cost is worth more than a million dollars. Retail a lot more. With what I see coming in now I believe I could handle payments with no problem. I would also be open a lot more hours than he wants to be. ok he isn't worried about the property or buildings he could easily take those back.. His concern is what if I were to empty out the buildings? The merchandise can be moved. Does anyone have any ideals? I thought maybe monthly inspections?? This is a chance in a lifetime I don't want to blow it. Thanks in advance.
Best Answers: My employer is willing to finance his business to me.?
Walton | 3 days ago
First off, after reading the answer from TE about putting your house up for collateral, I want to emphasize that you should try NOT to collaterize (secure) this transaction with anything other than the business itself. Basically, if the business goes to crap and you can't make the payments anymore, you need to make sure you can walk away by handing over the keys and that he will not take recourse or a deficiency judgment against you.
The easiest step to accomplish your goal is to find an insurance plan that he can buy that protects the merchandise from theft. That way, if you clean out the store and walk, he's covered. Insurance plans routinely cover not only the cost of the merchandise, but also lost profits, etc from your merchanidise not being able to sell during the time period in which the store is affected..
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Originally Answered: How do i finance my business?
There's a few different places you can start. First, if you didn't already, get a business plan together. Whoever is going to consider financing your business, they'll ask you for one.
Next, you can get in contact with SCORE (Service Core of Retired Executives - www.score.org). It is a free service from retired execs on how to start, build and maintain your business. From their website, you can do a zip-code search for the chapter nearest to you. They offer ways for you to get funding (and they'll help you build the business plan if you need).
Also, the Small Business Administration has special loans for starting businesses. The web site is www.sba.gov -- right on the front page is a "small business planner" that can help you out as well.
You can also try local banks and credit unions as well. They are more than willing to give out business loans (again, have a business plan handy to give to them). Just be careful and shop it around though, some have higher interest rates than others. Most are "interest only loans" which mean that the payment they set you up with are interest payments only, not principal. After the term of the loan, you've only paid interest and the full principal is then due (although, they'll usually wrap it into another term (usually 1 or 2 year loan) for you).
Both websites can help immensly in your search for funding as well as help you better prepare for opening the doors.
Good luck with your business :)
If the total rent or sale amount includes the value of the merchandise then you'd be bound by the rental agreement so if you were to run off w/ the merchandise he can still come after you as per the rent/sale agreement.
For example, if the business is worth 1 Mil but you consider the total value to be worth that Million plus the value of the merchandise then the sale amount to you would be that total. The agreement would require you to pay him that total amount divided by the length of payment, lets say 10 years. At that point it shouldn't make a dioffernece to him what you do w/ the merch, as long as you make the monthly payments.
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he should loan you the funds to buy the merchandise, with your house as collateral. so, if you empty his building, he will take your house.
it looks like a good deal to you that he transers the business, if profitable, to you, and you should take his offer and financial statements to see a good professional accountant for his views.
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Definitely ask to see his financial statements, you may be getting into a venture that isn't profitable for him and won't be profitable for you.
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Originally Answered: Investment Banking.business, law, or finance?
It's more of a financial career because you're managing investment funds and several types of finances. But finance is taught at a school of business and you are most likely to get sufficient training in both. Once you get to graduate school is where it matters (MBA vs. masters in finance).
I'd like to say investment bankers have good job security, but at the moment there are alot of layoffs plus you have to factor in how money jobs were lost because of the Bear sterns collapse. Plus there's the housing crisis. I was planning to double major in economics and finance but things seem a little gloomy right now, especially with the negative savings rate going on (we're spending more than we're making).
If you are good at math, really good, you might want to consider being an actuary. They're basically financial mathematicians who literally calculate risk. Very high in demand with investment banking and insurance, and the demand will probably grow because of social security, life insurance, and pension funds having to adjust to rising life expectancies.