 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: Things to Do Before Applying for a Business Loan\n------------------------------------------------\nBefore you can apply for a loan, you need to assemble some basic information. Many of the answers you need will require input from the seller. Although this may seem cumbersome, it's also an opportunity to get some cold, hard facts about the business you're hoping to buy.\nThe Small Business Administration (SBA) recommends working with an accountant and an attorney to help you navigate the sales process. Together, they can help you accomplish key objectives, such as:\n*   Working out a fair business valuation.\n*   Negotiating and executing a letter of intent and sales agreement.\n*   Understanding the tax requirements and consequences.\nTo prepare for the loan application process, ask yourself:\n*   How much of the purchase price can I finance myself—and how much can I use as a down payment? Most lenders require at least 10% down. It's often preferable, and you may be required, to put down more than that since the more money you put down on a loan, the less money you will need to borrow.\n*   Do I have collateral I can use to secure my loan? Business loan collateral might include the business you're purchasing, equipment, vehicles, real estate, inventory and accounts receivable. Personal assets—such as vehicles, valuables, retirement accounts or your home—may also be used to secure a business loan, but beware of pledging an asset you wouldn't want to part with if the business falters.\n*   How does my credit measure up? Check your personal credit score for free and access a credit score and report for your proposed business before starting the application process so you know what to expect. END