Call us on 0845 319 2780 or email at info@inbfs.com

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FAQs

What are A1, A2, A3, A4 and A5?

Local authorities grant 'permitted use' designations to premises in their area; these are the most common categories:

A1 - Retail uses

A2 - Professional and Financial Services

A3 - Hot Food Restaurants

A4 - Licensed Premises

A5 - Takeaway

 

What is the difference between purchasing a business Freehold or Leasehold?

If you purchase the Freehold Fixtures & Fittings you will own the property as well as the business. If you purchase Leasehold you will own the business, fixtures and fittings and the right, usually for a given period, to occupy the business premises for an agreed rent.


What does SAV mean?


SAV means Stock at Valuation.  When you buy a business this stock is not usually included in the asking price for the business. For example, a newsagent will have a certain amount of stock which includes what is on display and what is in the store room. When you buy the business, you may need the stock to carry on trading while you introduce your own lines. So the value of the stock is calculated and paid for when you take over the business.

What is gross profit and net profit?

Gross Profit is the profit after the stock has been paid for - takings less purchases. Net Profit is the profit after all other expenditure has been deducted and is the money the business has made for the financial year.


What should I do if I have found the business I want to buy yet the bank refused my loan request?

In most circumstances we will be able to help you. If you are looking to buy a business, leasehold or freehold and your credit rating is less than perfect or you have been turned down elsewhere, then contact our offices. We assist buyers with finance; our lenders can often put together a financial package where other lenders cannot.


Is your service free to Buyers?

We offer Buyers professional advice on the different aspects of buying a business; we will help to identify the business that is right for you, simultaneously explaining the various methods of financing your investment. Yes, this service is free. We can also simply explain the transaction process through to completion with a step-by-step approach.  

 

 

I've not bought a business before. How long does it take?

Initially, you will need to arrange an appointment through us to view the business you have selected. Once you have had a meeting with the Owner(s), we will seek to provide you with the latest profit/loss accounts for the business and these accounts should form the basis of your offer. If your offer is subsequently accepted, you should allow for a period of between 6-8 weeks for completion of the purchase. During this process, solicitors for both sides will draw up and agree a Draft Sale document together with purchase contract details and, if the purchase is on a leasehold basis, the references that the Landlord will require before assigning the lease to the Buyer . Once agreement is reached, an Exchange of Contracts takes place and a date for completion of the process is set. By this time, a buyer has usually confirmed their funding arrangements for the purchase.

 

 

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