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nsuk's Avatar nsuk nsuk is offline
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Join Date: Jul 2005
Location: Newcastle UK
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Need Funding

Hello,
I was wondering if anyone would be able to point me in the right direction. I am the owner of a company with my business partner. I am 17 years old and my partner is 18 years old. We have a business but are thinking of expanding, however we have a problem. We need $40k - £23k as a down payment for the business however we cant find funding for this anywhere. The business that we are buying turns over $113k per year at the moment.

Any help would be greatly appreciated.
Thank you.
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nsuk's Avatar nsuk nsuk is offline
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Any advice please?
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Inzvestor Inzvestor is offline
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Are you looking to buy a US based business?

You may struggle to receive funding from UK sources for this, as most investors like the security of £ and being able to act swiftly should something go wrong.

If you're looking into a US based business have you considered the tax implications and factored these into your equations?
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nsuk's Avatar nsuk nsuk is offline
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It is a web hosting company. It has servers in datacenters. As far as I am aware there are no taxes I have to pay apart from contributions. Im buying the company off the current owner, but because I doubt I can get the $100k that he is asking to buy the company outright. Therefore I am offering him a commission deal, so that he gets a percentage of the profits until the 100k is reached. He has accepted that deal, as long as I can get the 40k. He is also going to help me earn even more money on the company as it is in his best interest as well as mine, as it will mean he will receive more money in the commission, thus paying off the $100k faster.
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nsuk's Avatar nsuk nsuk is offline
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Can anyone give me any more pointers in the right direction? I hate bumping but I need the advice quickly.
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jklondon jklondon is offline
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its hard to get the finance because from a risk/reward view I suspect the numbers might not stack up - having said that I know nothing about this company - I assume its not a reseller then but actually owns the servers right. If there is something "special" about this company then approach a business angle perhaps but I dont rate your chances - sorry!
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ii3mhz ii3mhz is offline
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i agree with jklondon, too many hosting comanys out there what makes you think you will be able to source new customers?

I've been in the business of selling game servers myself its amazingly hard to take off. Have you asked yourself why the owner wants to sell it aswell? Maybe he cant source new customers so decided to go for a sale.
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nsuk's Avatar nsuk nsuk is offline
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It already has 500 customers It is very highly ranked, but I dont want to say what it is, that may threaten my chances. I am looking into private funding from family tomorrow.
I have done my research on this company, the figures do add up. It has the beauty of growing exponentially. Also I am very friendly with the owner and he is helping me along with the business if I can find the 40k funding.
Oh and I know how hosting works. I own my own web hosting company; as you can see in my sig. I'm looking to invest in another.
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ii3mhz ii3mhz is offline
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to be honest however harsh this sounds, if i was your family member and you asked me for 40k i'd tell you what to do. Hosting businesses are good for a certain amount of time if you dont have the skill and dedicate to keep it afloat you wont be getting very far with it no matter if it has 500 customers of 5
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nsuk's Avatar nsuk nsuk is offline
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I already have a hosting company and it is running well. As a matter of fact they are seriously considering it, they have invested in my ideas/projects. before.
P.S The 40k is USD so its £23kish
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