Hi Gents,

Not regularly on here, so when I am, I have huge issues, for which I need your advice.

About 8 years back, my father was afforded the opportunity of buying a business from his then employer. The deal was too sweet to pass up. He offered the business to my dad with no fixed payment and no fixed term, so basically it was a "pay me as you can afford it" kind of deal...Coupla years later the 'seller' passed away and of course ownership of the business went over to the kids as did the building, which wasn't part of the deal. I was very wary at this stage, but the kids kept to the letter of the deal of which I am very glad. My dad passed on and me and my brother and sister each got a share and kept it running

After we finished paying for the business, we offered to buy the building, but the weren't in the market to sell. So we are still renting to the tune of about R30k per month

Current economy and a bad business decision, as well as some unforeseen losses in terms of bad debt, means that at current we are into our overdraft every month. We are surviving, but not really showing a profit, but fighting hard to recover.

Now came the bomb. The owners informed us today that they want to put the building in the market. This is devastating to us. They want to sell the building for R5.5m. So...this creates some horrid scenarios for me:

I could try and buy the building, but this is unlikely seeing as my bank only give 70% loans for commercial property which leaves me with a R1.65m part to pay, which I obviously don't have, not even in assets, not even close. Even if I could, my repayment will be around R60k per month which is double what I am paying now. Steep increase for a business trying to get out of the overdraft.

If I don't try to buy it, there is some scary scenarios:

1) The new owner, would most likely hike the rent at the next contract, creating the same scenario as above
2) The new owner, might give us notice, demolish this building and put up a block of flats, as I am on the border of the business and residential areas
3) The business has been here for more than 40 years. If a competitor with deep pockets buys the building and gives me notice, he'll be able to take over my franchise as well....

Al these scenarios are scary to me. Please help.