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Private Funding For Buying Websites?

by aboutusnow
7 replies
I have found a group of websites I am interested in, but they are listed at around $150k The websites net around $80k a year.

Has anyone had any success with finding private funding for website purchases? I am working with the bank, but I have been told that getting a 80% loan on this will be "tough".
#buying #funding #private #websites
  • Profile picture of the author koncorps
    Originally Posted by aboutusnow View Post

    I have found a group of websites I am interested in, but they are listed at around $150k The websites net around $80k a year.

    Has anyone had any success with finding private funding for website purchases? I am working with the bank, but I have been told that getting a 80% loan on this will be "tough".
    Never tried but interesting idea.

    Have a really solid business plan + lots of numbers / data to back you up.

    Won't be easy as banks are somewhat traditional and don't believe in the interweb (maybe not as bad as I make it seem).

    Tell us how it goes (even if bad) and take notes on what you remember to help anyone else who might try this in the future.

    Good luck and cheers.

    -Konstantin.
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  • Profile picture of the author George Tee
    banks to fund? hmm.. sounds difficult at the current moment.

    But i guessed in the future, there will be many such kinds of investments out there that involves websites.
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  • Profile picture of the author enterpryzman
    Buy an option to purchase them for a period of time for a fixed price. this will show financial commitment on your part and then take that agreement with financials to investor or bank.

    I have done this many times with real estate, you could try it.

    Enterpryzman
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  • Profile picture of the author Samuel Baker
    Very interesting proposal will be good to hear from someone whom has actually gotten private funding from banks for such an investment. Could possibly peak the banks interest if they could benefit from it, have a solid plan for expansion of the website and everything written down to the letter if you go ahead with trying for funding.
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    • Profile picture of the author ozduc
      You need to approach it from a "buying a business" perspective and present it to potential lenders as such.
      As is normal in any business funding they will want to see the financial records of the business for the last 2 years along with projections for the next 5 years as well as a solid business plan showing what experience you are bringing to the table as far as running this type of business. If you have none do you have people that you will put in positions that can successfully run it.
      You could also apply for an SBA loan if you don't mind the red tape.
      Your other option is a private investor.
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      • Profile picture of the author enterpryzman
        Originally Posted by ozduc View Post

        You need to approach it from a "buying a business" perspective and present it to potential lenders as such.
        As is normal in any business funding they will want to see the financial records of the business for the last 2 years along with projections for the next 5 years as well as a solid business plan showing what experience you are bringing to the table as far as running this type of business. If you have none do you have people that you will put in positions that can successfully run it.
        You could also apply for an SBA loan if you don't mind the red tape.
        Your other option is a private investor.

        I would say don't waste your time with SBA loan, this is going to be a pretty tough sell to any lender due to the nature of business financing these day. I just completed a very large financing package and the business has 50 yrs history and great D & B rating, it was like pulling teeth and jumping through many hoops.

        The only reason I suggested an option is to negotiate a contract and settle on a firm price with a specific period of time to complete the purchase. Once all is signed and sealed, you have something to actually take to someone with financials and all the better if your agreement is for less than it is worth.

        I have never completed a Reg D direct offering but, with the right figures and history, you could perhaps do that and raise the debt money. I know others who have done it and worked very well.

        Lastly, you may find it easy to borrow the money if you are willing to pay a broker to find the money for you.

        Good luck,
        Enterpryzman
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  • Profile picture of the author jamieludlow
    This is interesting because I was and kind of still am looking for an investor to invest in my business or buy it outright.

    I came across quite a few sites where people looking to invest in business are registered and entrepreneurs can list their businesses for the investors to browse and get in touch with any of the entrepreneurs if they like their business and want to invest in it.

    You could list the sites on these sites and ask for funding, get the funding and then make the purchase. The only downside is this may mean you only own a % of the business and not all of it, but it would be much easier to find an investor than approaching banks etc.
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