Mhm. Hi robert from Freedom Factory here. And I want to talk to you about a question that we get from buyers an awful lot, which is, well, what if I don't have a million dollar check to write? And the reality is most of us don't have $1 million dollar check to write. But how do you buy a business if you don't have $1 million dollar check? And that's what we're gonna jump into you today? So it's my personal belief that small businesses are the most undervalued asset class In the, on the entire planet. And you know, if you're buying a stock and you're buying it at a 30 times multiple or 30 times price to earnings ratio, which is the value of the company when you're looking at a small business that you're looking at 3-5 times multiple, which obviously is significantly different than the stock market. And so if you have a special set of skills, which is how do you run a small business? There couldn't be a more undervalued asset class. And I think the opportunities are limitless. And I think one of the big reasons that many people don't consider buying it is they say, well, I don't have a million dollar check to write. And that's true for most of us.
And so Let me talk to you about some options and there are many more, but I'm just gonna go into some early ones. Most businesses sell with some sort of seller financing, especially if the seller believes in their business. So sometimes you'll have a 30% note, 50% note sometimes an 80% note to the seller. And what that means is is the seller is carrying a note of the financing or carrying part of the financing on the business and it's secured by the business. So if you didn't make the payments on that note the seller would come back and take their asset and that's okay with them. So usually we see some sort of seller financing and obviously there's no bank requirements, no prequalification. All the seller has to do is say yes. Another option that we do is we have been selling businesses for an awful long time and so we have several relationships with S. B. A. Lenders across the country and usually we can get a go or no go in 24 to 48 hours. And if a business is a good S. B. A. Business or small business administration which essentially is a government subsidized loan then it can give you up to 80% of the value.
So you can buy a million dollar company with a check of only a few $100,000. That's a great way to go as well. I've even taken over a business where I have not spent any money out of pocket and people say, well why would you do that? And um it was a T. Business. And as some of you know I used to work in the search engine industry and had an early search engine in Silicon Valley. And and I was considered a search engine expert at, you know, 10 years ago in my career. Well there was a tea company that acquired all their customers through search engine optimization. And so they wanted to work with me, but I wasn't willing to write them a check. So I took over the business. I didn't even make a payment for the first six months to make sure it would work and I eventually bought it and I didn't even write a check for a penny at a pocket. All I did was fund the operating capital needs of the company. So there are lots of ways that you can buy a business without writing a million dollar check. In fact, most of the businesses aren't one buyer and one seller writing a seven or eight figure check.
And there's lots of ways to be able to do that. Of course you can raise investment, you can syndicate, there's lots of options. And if you have any questions about what's the best way to either by a seller finance business or what makes a great candidate for an S. B. A. Business. Why don't you give us a call at Freedom Factory and if you even thought about buying a business, there's never been a better time than there is today. We look forward to speaking with