AmiSight 6/13: Financing a Business Acquisition: What’s the Most Important Thing to Consider?
When considering financing an acquisition, buyers often focus on the rate of their financing as the most critical issue. If one option is 5% and the other is 7%, the immediate inclination is that the lower rate is always better.
My advice is to slow down. The more critical issue is what your monthly payment will be. Sometimes it's worth it to pay more interest, to take a longer-term note with lower monthly payments.
Building a business rarely ever goes in a straight line. There will be ups and downs. And when you're going through a down period, lower monthly payments will be your friend.
Want to learn more? Join us for a webinar this Wednesday at noon est. with Lynn Ozer: https://ax1e70vo.pages.infusionsoft.net