Small businesses are often formed by partnerships and are usually financed initially with a small business loan. In some cases, one partner may find that they are not as interested in the venture as the other, they may have another career or business that they would like to devote more time to, they may just wish to cash-out their portion of the profit from the business or one partner may want to “push out” a partner for various reasons. In these cases, one partner must find a way to finance a buy out.

When buying out a partner, there are factors to consider such as: How much money will it take to complete the buy out? Will the buy out be a complete buy out or just for a percentage of the partner’s interest? And how long will it take to recoup the expense of the buy out?

Many businesses are beginning to seek alternative funding sources for the working capital they need to buy out a partner. Conquest can provide some or all of the working capital that is needed for a buy out. If the business processes credit cards, we may be able to provide the fast cash you need to provide to the departing partner.

When carefully planned, a buy out can be relatively painless for both parties, and having the right type of financing can further ease the process.