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Getting Credit To Purchase An Ecommerce Store

by JeffHylands
4 replies
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Hey guys I had the opportunity of finding someone wanting to sale their site before listing it. I am getting a pretty damn good deal and after I get my hands on it will send it over the six figure mark. It's not a big loan but I need $3,000 to finalize the purchase.

I am not sure how to approach the bank and what kind of credit I should apply for, and if I would need to use the business being purchased as collateral. I have ok credit, it's being built up not great but not terrible. How would you approach a bank on getting a loan for this type of purchase? Thanks I am so excited because this is a deal of a lifetime for me, but need approved before I can get too excited.
#credit #ecommerce #purchase #store
  • Profile picture of the author Marsala
    You didn't specify if you researched the opportunity before jumping in? What's the seller's reputation? Do you have proof of monthly revenues? etc. Buyer beware.

    If you don't know how to do the due diligence on the opportunity, there are plenty of people on the forum who can help you.
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    • Profile picture of the author JeffHylands
      Originally Posted by Marsala View Post

      You didn't specify if you researched the opportunity before jumping in? What's the seller's reputation? Do you have proof of monthly revenues? etc. Buyer beware.

      If you don't know how to do the due diligence on the opportunity, there are plenty of people on the forum who can help you.
      Hey Marsala yea I did all the research on the site, I won't release any major details in the open especially before the purchase is final. Ill just say that it's generated $75,000 in revenue in the last two years and over $10,000 just in the last month. It's also generating great traffic with rankings that could be improved upon as well.

      I am not looking for partnerships or anything like that just curious as to how to approach a bank about a loan for this type of investment. Thanks for your reply.
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      • Profile picture of the author kayebee
        I think the best approach is to state that you are trying to finance a small business. If they're asking for more details, which I doubt, just tell them it's an online business that someone is selling to you and it's a very reputable company. I don't think they will ask for more details then that. I think all that matters is your credit and if you'll be able to pay them back the loan. If you already have a good relationship with your bank then you shouldn't run into many problems. Wow... didn't think my banking experience at my 9 to 5 job would be useful on this forum. lol... Hope this helps you
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  • Profile picture of the author derrickp
    Most traditional banks won't lend money for an online store. If you only need $3,000 you could probably get an unsecured personal loan. With that said I personally wouldn't borrow money to fund any venture that depends one search engine rankings. Cash flow it or no go.
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    Slime England

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