Fairport Business Capital talks the purchase over by phone and hands the request to funding partners, who review it and decide.
A step-by-step guide for Gaffney, SC buyers of an existing business: the records to ask the seller for, how cash, a seller note and outside financing combine, and what a funding partner may review.
How to get a loan to buy a business when the target is a Gaffney, SC manufacturer
Buying a running plant is a larger version of the same steps any purchase follows. The buyer and seller sign a letter of intent with a price and a closing window; the buyer then works through the records, settles how the price will be paid, and brings a funding request that rests on what the plant already earns.
- Sign a letter of intent that names the price, what is included and how long the buyer has to review the records.
- Ask the seller for three years of tax returns and financial statements, the equipment list and the main customer accounts.
- Check the price against the plant's earnings, with an accountant or a business valuation if the deal is large.
- Call with the price, the buyer's cash and any seller note, so a partner can look at a term loan for the rest.
- Close with a purchase agreement and bill of sale drafted by the buyer's attorney.
Manufacturing (NAICS 31-33) is a field of larger shops in this county: 58 establishments in 2023, and only 17.2% of them with fewer than five employees, per County Business Patterns. For a plant, a partner may look closely at how much of the sales come from one or two customers, since losing one after the sale would change what the business earns.
Business acquisition loan for gas stations in Cherokee County, SC
A gas station sale can bundle three different things: the business (the store, its stock and its equipment), the land and building, and the equipment on the forecourt. A business acquisition loan request through this site covers the first part only. Buying the land or building is a property purchase, and the forecourt is site work; both stay outside this site.
Within the business, the buyer pays for the store's goodwill, the coolers, shelving and hot food case, and the stock counted at closing. A partner may ask for the station's sales records split between store sales and the rest, the store lease or the terms on which the buyer will rent the property, and any brand supply agreement that carries over to the new owner.
Station stores are a familiar business in the county. County Business Patterns lists 40 Gasoline Stations (NAICS 4471) establishments in Cherokee County, SC for 2023, with 19 of them under five employees. ZIP Code Business Patterns counts 12 Gasoline Stations establishments at a ZIP 29340 address that year.
Down payment, seller financing and the buyer's cash at closing in South Carolina
Three sources can pay the price. The buyer's cash at closing is the down payment. A seller note is a loan from the seller to the buyer for part of the price, paid back over time after the sale. The remainder comes from outside financing, for example a term loan through a funding partner. How large each part must be is up to the partner and the seller, not this site.
| Part of the price | Amount | Share |
|---|---|---|
| Buyer's cash at closing | $36,000 | 10.0% |
| Seller note | $54,000 | 15.0% |
| Outside financing | $270,000 | 75.0% |
| Purchase price | $360,000 | 100.0% |
Illustration only, invented figures. A seller note of $54,000 at an invented 6% annual rate over 60 months comes with a payment of $1,043.97 a month, which the buyer pays alongside the payment on the outside financing. The buyer also needs cash left over after closing for wages, stock and the first weeks of bills.
Inventory counts and equipment lists in a Gaffney, SC purchase agreement
Inventory and equipment are where a purchase price turns into a list. The agreement can set the price for stock as a count taken just before closing, valued at the seller's cost, so the buyer pays for what is actually on the shelves that day. Old or damaged stock can be left out of the count or priced lower.
The equipment list names each machine with its make, model and serial number, and says whether it is owned or leased. Leased equipment belongs to the lessor, so it only passes to the buyer if the lessor agrees. A lien search shows whether a lender already holds a claim on the seller's equipment, which has to be cleared at closing. A partner financing part of the price may ask for both lists before it makes an offer.
What a lender reviews when a Gaffney, SC buyer purchases a clothing store
For a clothing store, a lender or funding partner may review the seller's tax returns against the point-of-sale reports, the age of the stock on the floor, and the store lease, including whether the landlord will assign it to the buyer and how many years remain. It may also review the buyer: retail experience, personal credit, and the cash left after closing.
County Business Patterns counts 33 Clothing and Clothing Accessories Stores (NAICS 448) establishments in Cherokee County, SC for 2023. A buyer looking at one of them can bring the asking price, the seller's last two years of sales and the lease to a call. The Gaffney, SC page has more county and ZIP figures, and the business loans page sets out the funding types.
State and federal offices a Gaffney, SC buyer can contact
- The SBA South Carolina District Office page lists the agency's contacts and resource partners in the state.
- The SC SBDC locations page shows where the state's Small Business Development Center offices are, for advising on a purchase plan.
- A buyer can check with the South Carolina Department of Revenue whether the new owner needs its own business tax account; its MyDORWAY page explains how to apply.
For checklists that help before any call, see the resources page.
By Fairport Business Capital · Updated