When you want to purchase an existing business, securing a large loan is essential. Small Business Financing Options can be used to cover all or part of the purchase price.
Consider SBA loans, seller financing or bank loans. There are also modern online platforms like Fundera and Lendo that facilitate loans for the purchase of a business.
Download your free copy BizBuySell Guide for Buying a small business to learn more about purchasing an existing business. Download the free ebook BizBuySell guide to selling your small business for small business owners looking for a buyer.
Find a small business to buy using the BizBuySell business for sale feature or use the Find a Broker feature for help in finding a small business.
How to get a loan to buy a business
This quick look at the different financing options is a great way to make an informed decision.
- Small Business Administration Loans : Small Business Administration loans offer competitive terms to buy a business.
- Bank loans: Traditional lending from banks and financial institutions, with a variety of loan amounts and terms.
- Seller Finance: A loan is provided by the current owner of the business, usually with interest. This allows buyers to pay in installments.
- Platforms such as Fundera and Lendio are online platforms that specialize in connecting business buyers with lenders.
- Conventional Loan: Offered to businesses by banks. A lump sum is provided with repayment spread over several years.
- Rollover For Business Start-ups: Uses retirement funds to invest in a new business without incurring debt or paying penalties.
- Venture Capital : Equity-based financing for high-growth industries, offering strategic partnerships and equity-based financing.
- Business Incubators and Accelerators : Provide mentorship and resources beyond financial support.
- Financing for Franchises: Available directly from the franchisors, or via partnered lenders.
- Government Loans and Grants: Includes SBA Loans and other government-backed financial assistance for small businesses.
- Personal Network : Borrowing money from family and friends under agreed conditions.
- Leveraged Purchase: The purchase is financed by borrowing money and using the assets of the company.
How to get a business acquisition loan
A business acquisition loan is one way to purchase an existing business. We’ll outline the different types of business loans and what you need to know before you start looking for a business loan.
