Getting Credit for Business Acquisition
Every time a company that goes bankrupt is a big problem for the country and for the citizens. Not only do thousands of people become unemployed, but the country is also severely impaired, as GDP declines and industrial production falls. Bankruptcy is everyone’s problem and the whole community loses it.
Many investors have discovered that buying a bankrupt company can be a good deal to make a profit in the medium and long term. Entrepreneurs, entrepreneurs and investors have lately put a lot of money into companies that are almost closing and making this a very profitable new investment niche, especially with the economic crisis we are experiencing that is creating the perfect scenario.
This is the classic story of many tycoons and entrepreneurs, such as Steve Jobs himself, who bought companies when they were a step away from bankruptcy and turned them into gold mines. Nowadays, there are even loans and special financings for whomever working capital or financial resources not to miss out on any opportunity that arises.
These loans to acquire bankrupt companies are easy to get loans, contrary to what many people imagine. They do not require as much bureaucracy and do not apply interest rates as high as some risk modalities. The first step for bank customers is to call the bank and request a conversation with their manager about it. Maybe this is the solution for your future.
Loan for acquisition of bankrupt companies
Buying bankrupt companies can be a good deal? If you are a business owner who is failing, you should know that the federal government, mostly through BNDES, has several lines of credit that can help save your business. This aims to facilitate the development of the country and protect companies.
The BNDES also has a line of credit that you can use to buy a company in a situation of judicial recovery. To obtain this loan the entrepreneur must have management capacity and economic and financial situation compatible with the acquisition and the intended exploration, as well as with the intended financing.
How to be funded?
Those interested in obtaining these types of loans for the acquisition of bankrupt companies are to seek information as already said with their bank manager or business consultant, mainly the state financing. You can even be financed with a BNDES card. An alternative way are P2P Lending lending platforms, it pays to know more.
How to Buy a Company in Bankruptcy
Anyone wishing to acquire a bankrupt company must also have financial statements audited by an independent auditing firm registered with the Securities and Exchange Commission (CVM). In this type of financing to invest in business, you just can not integrate the economic group of the seller, be part related to the seller, and be identified as agent of the seller.
What can be considered bankruptcy
For a company if it considers bankrupt it should fail to pay its creditors. Bankruptcy is nothing more than a legal process by which the company passes to collect means of payments due to creditors. It must be decreed by a judge and from this, the assets of the company or debtor are alienated so that the creditors can be paid.
When debts become greater than equity, the owner must declare bankruptcy. This is a way to protect creditors and the company itself. To save themselves and get back to business, many companies are declaring bankruptcy so they can start on the right foot again.
When is it worth buying a bankrupt company?
When a company talks, it can still find many ways to get it back online. Selling the shares or the company itself is just one of them. It is at this time that investors should take advantage of the sale of the company for a cheaper price. And the investment capital or working capital credit for this can be achieved with the help of a loan or financing to acquire bankrupt companies.
Why buy a bankrupt company?
Buying a company that is failing can be a good move. The market already knows the company, so it will be easier to deal with suppliers and even the general public that is already faithful. Usually, you will be able to recognize the good employees and will continue with them. In addition, the starting capital for your business is smaller, since you will have few inventory expenses among other things.
However, you should also pay attention to some risks that exist when it comes to falling headlong into this investment. It should be noted how was the name of this company in the market, the situation of the debt and how is the day to day business. Knowing the values of the institution and the old management is fundamental.
First of all, research very well how the legal situation of the company is. Buying bankrupt companies is a good deal, yes, but have specialized personnel in this business.