If you wish to have your own business, buying a company that is already established may be a more efficient and easier option than starting one from scratch. DTC is able to develop high quality and conforming business developments to provide you with the highest chances of success with your application, combined with the largest network of funders for finance to purchase a business.
A key benefit of buying a business is that you will have history on the business from which you will be able to make informed decisions. To make sure you buy the right business, you will need to do a thorough investigation of its past activities, operations, current status, the competition, the general state of the industry, and its future potential.
Advantages of purchasing an existing business:
- The groundwork to get the business up and running has already been done;
- Problems that may arise at the start-up phase have been addressed and rectified;
- It may be easier to obtain finance as the business will have a proven track record;
- There is a demonstrated market for the product and/or service;
- There may be established customers, a reliable income, a reputation to capitalise and build on, and a useful contact network;
- A business plan and marketing method is already in place; and
- Existing employees will know the business and have experience.
There are many options that are available to finance the purchase of an existing business. The best option depends on the amount of finance required, the approval terms, and the repayment terms offered by the lenders. Options such as term loans, government lending agencies, and equity finance are suited for the purchase of businesses that require a significant investment.
For smaller amounts you may consider approaching SEFA (Small Enterprise Finance Agency) as they fund both smaller and larger amounts.
DTC specialises in business finance and assists in managing and implementing the finance process for SMME’s. We have South Africa’s largest network of finance partners that include venture capital companies, private equity firms, government BEE initiatives, banks, angel funds, crowd funds, Silicon Cape investment companies and rent to own funding initiatives for your funding requirements.
For professional assistance – Contact DTC