Comment by adastra22
1 day ago
If this was inventory they were counting, sure. But you can’t sell part of a small business. Let’s say the parents own a restaurant, and the value of the land, building, and kitchen equipment is a few million. Do they sell an oven from the kitchen to put you through school? Sell the parking lot?
It’s an all or nothing thing. The business needs all its assets to function, and shouldn’t be considered any more than for its income potential.
Lease back for land and building is definitely possible. Most capital efficient corps do not own their own land and buildings for precisely this reason.
It is sometimes an option, not always. Depends on the cash flow of the business and current market risks. Not every business is automatically eligible. Small mom and pop restaurants often can’t get a loan on demand, at least not on predatory terms.