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Buying a restaurant...

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dogboy

Guest
Greetings,

I 'm considering purchasing a deli. I will need a small business loan for about 100k in order to pull off this transaction. My problem is a large portion of the sales have been cash transactions not reported for sales tax purposes. The deli appears to do more business than is accounted for. How can I convince my bank that the loan will be a good based on what appears on the books for the business. Can I use this to negotiate a better price with the deli?

I'm not sure if this is the most appropriate forum, but any advice would be appreciated.

Regards,
Dogboy
 


L

loku

Guest
You are correct: this is not the appropriate forum for this. You would do well to get professional help under the attorney/client privilege.

From the facts you give, there is not only a violation for sales tax purposes, but also for income tax purposes. The last thing you would want is to “aid and abet” the violations.

Furthermore, how can you be sure there are more sales than the books show, and if there are, how do you know how much. When the deli owner finds that you are not the only person who can not get a loan of the amount asked, the price could come down.
 

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