I want to buy an existing business but don't have money for a down payment, do I have any options?

The business I'm interested has been owner/operated from the same man for 21 years and he just wants to retire. The business isn't dying or anything, he's just ready to pass the torch. He wants 100k for the building (which is valued at 131k) and 100k for the business and all its inventory. Most banks say that for a 200k loan I need 20% down, but I just can't do that. The seller may be willing to put up 10% as a down payment but that is a long shot.

I've seen online some sites that offer huge loans that they call "unsecure loans" with no paperwork and quick access. Are these traps that I should avoid, or should I take the money if I can get it.


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  • Unsecured loans have very high interest rates and tremendous penalties if you default. Beware. You need to find an investor who will pout up some money, make a return for awhile, and then get out and turn the business back over to you.

  • Take the loan. You can always pay it back with a day job right?