When buying a business can you use projected business revenue to help qualify for loan?
Well when applying for a business loan you will need to have a "Business Plan" this is a easy way for bankers to tell serious prepared entrepreneurs from the ones that are not and projected income is a section in this documented plan.
This income can come from a person or another business using part of the businesses property. E.g. if you had an upstairs area which wasn't being used you could lease it out to another business this may bring you more business. You could also lease your expensive items or equipment such as cars or photocopiers. This will save you money as they will have to fix it if it breaks and also you are buying…
Possibly but it would depend on several factors such as wether they are purchasing or selling invoices. If they are selling how badly do they need the capital against how much loss in revenue. If they are buying they will have to decide how much spare capital they have and how much risk they are willing to take.
Verne A. Bunn has written: 'The essentials of buying & selling a business' -- subject(s): Purchasing, Sale of small businesses, Small business 'Buying and selling a small business' -- subject(s): Business enterprises, Purchasing, Sale of business enterprises, Sale of small businesses, Small business
According to the Sept. 2001 Journal of Industrial Economics, in the past rental places would buy a movie for at least $50 each, and keep all the rental revenue. The newer business model has Blockbuster buying the movies for about $8 each, then splitting the rental revenue as follows: 45% to the retailer, 45% to the movie studio, and 10% to Rentrak, Blockbuster's distributor. link is below
Net income represents amount of revenue minus expenses for the period of time in question. A business owner can withdraw from cash either on hand or in the company's bank account. Net income is basically profit from monies made from doing business after figuring how much was lost from the cost of doing business (buying supplies, inventory, parts, etc.). The income sometimes has to go to other things like wages to workers, rent of buildings…
Small business loans can be used for a many business-related functions, including buying business equipment, expanding your business, buying stock, hiring workers and much more. There are also some lenders in the market that have restrictions on how the borrowed amount can be used or which industries it will lend to, therefore it is important to check this stats before you apply.
Procurement work is basically a way to monitor the selling and buying of goods or services in any business. The people that do procurement make sure the buying and selling of goods and services is fair and check for receipts and invoices of every product that comes in and goes out of the business. Procurement work is prevention against business fraud and keeps things fair in the buying and selling process.
In brief: Business vs Commerce • Commerce and business are words with similar meaning but they also differ from one another • While business can be an entity, commerce refers to trade and trade related activities. • Commerce focuses on buying and selling part of a business whereas there is much more to a business than just buying and selling. Read more: http://www.differencebetween.com/difference-between-commerce-and-vs-business/#ixzz1tPYEpOCK