Guide to financing the purchase of
a business - Application procedure
To
enable us to prepare a submission on your behalf, we require
completion, signature and return of an
application form. It is important that all questions are
answered - in the event of any difficulty in completion of the
form, you should not hesitate to contact us. The application form
provides for fees payable to the broker only when a letter
of offer is obtained that is entirely acceptable to you.
You will not therefore be entering into any form of
financial commitment at this stage by completing and returning the
form.
The
agreed fee quoted is due and payable when the advance is drawn
down at completion of the purchase. The agreed reduced fee only
applies when, having obtained an offer that is entirely acceptable
to you, you subsequently do not proceed to completion. In such
circumstances, we feel that we have fulfilled our contractual
obligation to you and look to you in effect for half the fee
applicable if you had drawn down the loan.
In
effect the signing of this form does not place you under any
obligation whatsoever to either borrow money or pay fees, until
you have received and accepted an
offer
of a loan.
We
would draw your attention particularly to the question of status
i.e. how exemplary is your payment record in the past and have you
avoided County Court Judgements, bankruptcy, etc. Adverse status
really refers to a situation where you have been adjudged bankrupt
or County Court Judgements have been registered against you. In
the case of the former, quite frankly very little can be done; but
as far as the latter is concerned, much will depend upon when the
judgement was entered, the amount involved, the number of
judgements registered, the circumstances surrounding each one, and
whether or not such judgements have been satisfied.
The
essential point at the outset is to be totally and absolutely
honest so that we can plead in mitigation on your behalf. Several
judgements or one substantial judgement for a less than acceptable
reason can often be sufficient to preclude a loan being agreed.
There are, as ever, circumstances that can at least explain why
the judgements arose e.g. as a result of a dispute during divorce
proceedings, etc. It must be emphasized that all judgements
must be satisfied for the advance to be considered. Do please
ensure that you answer the status question very clearly 'yes' or
'no' and provide details of any adverse status on a separate
sheet.
You
are welcome to use our services in whatever way you choose and you
should not be put off by form filling. Please telephone for advice
if this helps, but even completing the form as far as possible
will often be sufficient - as we can then come back to you by
telephone if points need clarification. However, do not forget to
sign the form as this is the basis for our agreement with you and
unsigned forms cannot be processed.
Finance Links:
This links below will help you understand the
finance aspect of a purchase of a business.
