If you’re interested in buying a business, a financial organization, such as Fifth Third Bank, can help make your purchase a success. “We can help with everything from buying strategies to financing,” says Tom Arnold, Financial Center Manager with Fifth Third Bank.

Are you ready to buy?
Start by making an appointment with your financial organization. A financial professional can help you review your finances and determine if you are in the position to buy. Keep in mind that many financial organizations require at least 25 percent of the total cost of the business for a down payment, which is more than is needed for a typical mortgage down payment. This is because of the higher level of risk involved with business lending due to the frequent economic and industry changes.

You also need to be prepared to answer questions regarding the type of business you are interested in buying, your experience, your character and background and your plans for the business. “You need to demonstrate that you have a viable business opportunity,” says Arnold. For more information about developing a business plan, please read Starting Your Start-Up.

Selecting the right loan and financing
After reviewing your finances, you will need to decide which type of loan is best for your situation. “There are many types of loans, all of which have advantages and disadvantages depending on what you are looking for,” says Arnold. Your options may include:

• Fixed-rate loans, which offer interest rates that remain the same throughout the life of the loan. With this option you will know upfront the cost of your loan payment each month. This option may be the right choice for you if you prefer to work with a budget that includes an exact amount.
• Variable-rate loans, which are less predictable because the interest rate may change throughout the life of the loan. This option may be the right choice if you believe interest rates will remain low or drop while you have the loan.
• Short-term financing, which allows you to pay off your loan faster and with less interest. Although monthly payments are typically larger, you may feel more secure paying off your debt as soon as possible.
• Long-term financing, which allows you to make smaller monthly payments over a longer period of time. Keep in mind that although your monthly payments may be smaller, you will pay more in interest over the long term.

Contact Fifth Third Bank if you are interested in buying a business. Our financial professionals are available to help guide you through every step of buying and owning a business. “No business is too small and we can service all of your needs,” Arnold says.

To learn more about buying a business, contact Fifth Third at (866) 475-4201 or visit 53.com.

All loans subject to credit review and approval.