Buy an existing business with financing built for acquisitions. Compare business acquisition loan offers — including SBA 7(a) — from multiple lenders.
Check My Eligibility →Business acquisition financing funds the purchase of an existing business — its assets, goodwill and cash flow. Lenders underwrite the acquired business's financials as the primary source of repayment, which is why acquisitions are commonly structured with an SBA 7(a) loan plus a seller note.
Typical structures cover up to 80% to 90% of the purchase price, with the buyer providing a down payment and the seller sometimes carrying financing. Through BidMyCapital you can compare acquisition financing options from multiple lenders.
Lenders analyze the acquired business's revenue, profit and cash flow.
Often a lender loan plus seller financing and a buyer down payment.
The acquired business's earnings service the debt.
SBA 7(a) acquisition loans carry capped rates (prime + up to 3% to 6%) with terms up to 10 years. Conventional acquisition financing varies by deal size. Combined with seller financing, buyers often put together deals covering 80% to 90% of the price.
Relevant experience in the industry is usually required.
Stable revenue and profit over several years.
Typically 10% to 20% of the purchase price.
SBA 7(a) enables acquisition lending where conventional lenders won't.
Common structures combine an SBA 7(a) acquisition loan, a seller note and your down payment. Revenue and cash flow of the target business drive the deal.
Yes. The SBA 7(a) program is the most common route to acquisition financing, funding up to $5 million with the acquired business as collateral.
Most lenders want 10% to 20% down. Some SBA deals and seller-financed structures reduce the cash required.
Acquisitions can be financed on the business's cash flow and goodwill, especially through SBA 7(a) with seller financing.
Rarely, but seller financing and negotiated structures can reduce the cash required significantly below the full purchase price.