help needed business loan question, page-10

that is a lot of goodwill you are paying.

There are a few other issues a bank will look at, such as the type of business, how long the business has been in operation, profitability in the last 3 years at least, sustainable cash flows, etc.

You mentioned the net income. Is that the net profit ?

So, it is not just looking at the collateral in deciding your loan application. And, when it is a small business, the bank will usually want a personal guarantee as well.

You should seek professional help in assessing your decision to buy the business, if you have not already done that.

This is not an advice, just my personal opinion.