 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: What Do Lenders Consider When You Apply for a Business Loan?\n------------------------------------------------------------\nWhen you're buying an existing business, lenders want to know about both you and the business you want to buy. That's fair: Up to this point, you and your prospective business have had two entirely independent histories.\nAs they would with any loan, lenders want to know about your personal credit history. Do you have a history of successfully managing debt? Do you handle credit responsibly? They'll want information about your income, your current business (if you have one) and any relevant experience that makes you a good candidate for running this new business successfully. Here's a short list of items to prepare:\n*   Personal credit score\n*   Tax returns\n*   Income documentation and\/or cash flow statement\n*   Outstanding debt\nIf you already own a business and are looking to acquire another to expand operations or change your business model, lenders will also want to know about the financial health of your existing company. Check with your lender for a full list of financial information they require, but be prepared to provide the following:\n*   Financial statement (showing income, balance sheet, profit margin and cash flow)\n*   Business tax returns\n*   Business bank statements\n*   Business credit score\nFurther, they'll want to make sure your business strategy is sound and that your proposed business purchase has the income potential to allow you to repay your loan. Proving that could require showing:\n*   Valuation of the business you're acquiring\n*   Business licenses\n*   Three to five years of financial projections\n*   Business plan END