🏢 Business Acquisition

Business Acquisition Financing from $250K to $5M+

Buying an existing business means buying proven cash flow, trained employees, and established customers. We'll get you the financing to close the deal.

14–90 days
Deal close timeline
680+
Typical credit floor
$250K – $5M+
SBA 7(a), seller carry-back, conventional acquisition loans
15+
Years acquisition finance
40+
SBA & conventional lenders matched
4
Acquisition structures
75%+
Approval rate on submitted deals

Four ways to fund a business acquisition. One that's right for your deal.

Not every acquisition deal looks the same — and neither does the financing. We'll match the structure to the business you're buying and your financial profile.

SBA 7(a)
$250K – $5M+

SBA 7(a) Acquisition Loan

The most common acquisition loan. SBA guarantees 75% of the loan, which means lenders take on more deals and offer better rates. 10–12% down, up to 10-year terms, working capital can be included.

Gov-backed 75% guarantee 10–12% down required Up to 10-year term
Seller Financing
$100K – $10M+

Seller Carry-Back Financing

The seller carries a portion of the purchase price as a loan to the buyer. Rates are negotiable. Sellers who carry paper are signaling they believe in the business. Faster closing, less bank paperwork.

14–30 day close typical Negotiable rate and terms Combines with SBA
Conventional
$250K – $10M+

Conventional Acquisition Loans

Bank and institutional lenders offering acquisition financing outside SBA programs. Typically 20–25% down, competitive rates for strong deals. Best for established buyers with good credit and clean financials.

20–25% down typical 30–60 day close Full income documentation
Partner Buyout
$250K – $5M+

Partner Buyout Financing

Buying out a business partner or co-owner is its own category — you're financing both the acquisition and the transition. Requires valuation, partnership agreements, and often a combination of SBA and seller financing.

Business valuation required Partner agreement documentation Often SBA + seller carry

What lenders look at for acquisition deals.

Acquisition financing evaluates both you and the business you're buying. The stronger each side, the better your terms. Here's what matters most.

  • 📊 Business cash flow: Lenders underwrite the business's ability to service the debt. They look at SBA form 2202 (past 3 years), tax returns, and debt service coverage ratio (DSCR). Target 1.25x DSCR minimum.
  • 💳 Personal credit score: 680+ for the best rates. 640–660 is the SBA floor. Below 680, you'll need stronger collateral, a larger down payment, or a partner with better credit.
  • 📋 Business financials (2–3 years): Balance sheets, profit & loss statements, and tax returns. Lenders want to see documented, consistent cash flow — not one great year.
  • 📅 Time in business: The business you're buying should have at least 2 years of operating history. Acquisitions of brand-new businesses are extremely difficult to finance.
  • 💰 Down payment: SBA requires 10–12% minimum. Conventional lenders often want 20–25%. Seller financing can sometimes close with 10% total across SBA and carry-back.
  • 🏢 Use of funds: Lenders want a clear picture of what you're buying and why. A detailed purchase agreement or Letter of Intent (LOI) speeds the process significantly.

Have a specific target in mind?

Tell us about the business you're looking at — or the one you have under LOI — and we'll tell you the fastest path to financing. No cost, no commitment.

Get Pre-Qualified → Free Readiness Checklist
Who This Is For

Buyer profiles that drive acquisition financing.

Acquisition deals are as varied as the buyers who make them. Whether you're a first-time buyer, an experienced operator, or somewhere in between, there's a structure that fits.

🎯

First-Time Buyer

Buying your first business. SBA loans are designed for you — low down payment, long terms, no prior acquisition experience required.

🔍

Search Fund

Raising capital to search for and acquire a business. Investor backing plus acquisition debt gets you to closing.

🏭

Industry Consolidator

Roll-up strategy acquiring同类 businesses. Portfolio financing and SBA 7(a) for multi-location acquisitions.

👨‍👩‍👦

Family Succession

Buying out a retiring owner in a family business. Seller financing with favorable terms is common in these transitions.

🤝

Partner Buyout

Buying out a co-owner or partner. Requires valuation, legal agreements, and a financing structure that works for both sides.

🌱

EOB to SBA

Existing owner-operator adding a new acquisition to your portfolio. Your track record makes the deal easier to finance.

📈

PE / Searcher

Institutional capital backing an individual searcher. Combines equity check from investors with acquisition debt.

🏪

Franchise Acquisition

Buying an existing franchise location. Lenders familiar with the franchise model and its financials.

Why buying beats building — and how to finance it right.

01

Proven cash flow from day one

You're buying revenue, not building it. An existing business with 2–3 years of clean financials is a far lower risk than a startup. Lenders view acquisition debt more favorably than startup debt.

02

Lower financing barrier than startups

Startup loans require 2 years in business and documentation that doesn't exist. Acquisition loans finance the business you're buying — the collateral is the acquisition target itself. Better terms, faster approval.

03

SBA 7(a) up to $5M with 10% down

The SBA 7(a) program was built for exactly this use case. 10–12% down, long terms (up to 10 years), working capital can be included in the loan. It is the lowest-cost acquisition capital available for qualifying buyers.

04

Tax-advantaged acquisition structure

Acquisition debt is often tax-deductible. Seller financing interest, SBA loan interest, and acquisition-related costs can reduce your tax burden in year one. Talk to your accountant about allocation strategies.

Common questions about business acquisition loans.

Acquisition financing typically ranges from $250K to over $5M. SBA 7(a) loans go up to $5M with 10–12% down. Seller financing structures vary widely based on the business's asking price, cash flow, and seller flexibility. Conventional acquisition loans and search fund financing can reach $10M+ with strong collateral and track record.
Most lenders want a personal credit score of 680+, with 720+ preferred for the best rates. SBA 7(a) lenders typically have a 640–660 floor. Below 680, you may need to offer additional collateral, bring in a partner, or explore seller carry-back options. Strong business revenue and a solid acquisition target can compensate for a lower credit score.
Lenders want your personal and business tax returns (2–3 years), profit and loss statements, a current balance sheet, the business's financials (2–3 years), the purchase agreement or LOI, and a detailed business plan for the acquisition. Seller-financed deals may require less documentation but will include a promissory note and security agreement.
SBA 7(a) acquisition loans take 45–90 days on average. Conventional acquisition loans can close in 30–60 days. Seller financing is typically the fastest — 14–30 days when the seller is motivated. Seller carry-back combined with a SBA loan is a common structure that balances speed with favorable terms.
Yes — SBA 7(a) is the most common government-backed loan for business acquisitions. It offers up to $5M, 10–12% down payment requirements, and competitive long-term rates. It's also available for refinancing existing acquisition debt. The 7(a) works for a wide range of business types including service businesses, manufacturing, wholesale, and retail.
Seller financing means the current owner carries part of the purchase price as a loan to the buyer. The seller receives a down payment upfront and the rest in installment payments over a set term (typically 3–7 years) at an agreed interest rate. Seller financing signals seller confidence in the business and often simplifies the due diligence process.
A search fund is a structure where an investor provides capital for an individual to search for and acquire a business. Search fund investors typically contribute $200K–$600K for acquisition sourcing. Once a deal is identified, the searcher raises debt financing to close. Acquisition loans for search funds require a strong personal profile, a clear acquisition thesis, and investor backing.
Buying an existing business gives you proven cash flow, trained employees, established supplier relationships, and existing customers — the things that take years to build from zero. Acquisition financing requires more documentation and due diligence, but the risk profile is lower than a startup because you're buying documented revenue. Lenders view acquisition loans more favorably than startup loans.

Tell us about the business you want to acquire.

Under 3 minutes. We'll match you to the right acquisition lender and structure.

Acquisition Loans by Amount & Industry

Deal-size specific acquisition financing guides with SBA 7(a) requirements, approval timelines, and lender criteria.

🤝
Business Acquisition — $2M
SBA 7(a) acquisition guide & lender requirements
🏥
Medical Practice — $1M
Medical practice acquisition & goodwill loans
🍽️
Restaurant — $500K
Restaurant acquisition & expansion loans
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SBA Loan Overview
SBA 7(a) programs for acquisition financing
All Industries & Amounts
View the full funding hub

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