Average time to sell a business stretches out as buyers find it hard to get finance

A survey of LINK business brokers has shown the average time to sell a business has stretched out from 15 to 21 weeks as buyers struggle to get the finance needed to seal the deal. The survey also found the delays in obtaining business finance were pushing down sale prices, with the average price dropping from $400,000 to $225,000.

LINK managing director David Fitzgerald says this significantly makes it hard for business owners. Furthermore, the average buyer is “taking almost nine months to find a business that is suitable or that they can afford.”

The survey showed a 39% increase in the number of interested business buyers. However, about 38% of buyers surveyed have had to re-evaluate the types of businesses they can afford due to tightening lending policies, while 44% of buyers said the biggest problem is getting finance from the banks.

Overall, approximately 81% of business owners and buyers have had trouble obtaining finance from the banks.

If you require finance to start up a new business, buy a business or need business cash flow to expand your operations, but you are having problems with your bank because of the stricter lending criteria, speak to one of the business finance advisers at Intellichoice today on 1300 55 10 45. We have helped numerous clients to achieve their dreams and goals through alternative business finance solutions, including invoice finance, business loans, trade or import finance, inventory finance and equipment rental hire.