Finance

I'm purchasing an existing convenience store. How do I finance this purchase? I need about $50,000.

min read
Opinions expressed by Entrepreneur contributors are their own.
If the business you're buying is making money, you may be able to obtain a bank loan to finance the deal. However, if the seller is willing to provide financing, this may be an even better option. Seller-side financing (often referred to as an "earn-out") allows the buyer to make a small downpayment--say, 10 percent of the purchase price--then pay out the rest over time.

Often, earn-outs are tied to the company's future financial performance, giving the former owner an incentive to teach you the business and retain loyal customers.

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