Business Acquisition Loans: Finance Your Path to Ownership
Get the funding you need to purchase an existing business or franchise. Our AI matches you with the right acquisition financing solution for your specific situation.
Skip the Startup Phase
Acquire an established business with proven revenue, existing customers, and operational systems already in place.
Established Cash Flow
Buy a business with proven revenue history
Existing Customer Base
Inherit established client relationships
Lower Risk Profile
Less risky than starting from scratch
What is a Business Acquisition Loan?
A business acquisition loan is a specialized financing solution designed to help entrepreneurs purchase existing businesses or franchises. These loans provide the capital needed to cover the purchase price and sometimes additional funds for working capital, improvements, or transition costs.
Unlike startup financing, acquisition loans are backed by the historical performance of the business being purchased, which typically results in more favorable terms and higher approval rates. The acquired business itself often serves as collateral for the loan, sometimes supplemented by other assets.
Key Characteristics of Business Acquisition Loans
- Longer repayment terms
Typically 5-25 years depending on the loan type and assets involved
- Significant down payment
Usually 10-30% of the purchase price, depending on the loan program
- Business performance focus
Lenders evaluate the target business's financial history and cash flow
- Multiple financing options
SBA loans, conventional bank loans, seller financing, and more
Business Acquisition Market
The business acquisition market remains robust, with over 10,000 small businesses changing hands annually. This represents a significant opportunity for entrepreneurs looking to skip the startup phase and acquire established operations.
75%
of acquisitions use some form of financing
$500K
median small business purchase price
45%
of acquisitions include seller financing
How Our AI Finds Your Perfect Acquisition Financing
Lendec's proprietary AI technology analyzes your acquisition target and financial profile to match you with the right financing solution.
Business Analysis
Our AI analyzes the target business's industry, financial history, assets, and cash flow to understand its acquisition financing potential.
Buyer Profile Assessment
The system evaluates your credit profile, available down payment, industry experience, and financial situation to determine your qualification factors.
Lender Matching
Our AI compares your acquisition and profile against our database of lenders to identify those most likely to approve your specific transaction.
Capital Stack Optimization
The system recommends the optimal combination of financing sources to create the most advantageous acquisition structure for your situation.
Types of Business Acquisition Financing
Different financing options to help you purchase an existing business or franchise.
| Financing Type | Down Payment | Term Length | Interest Rates | Best For | Time to Fund |
|---|---|---|---|---|---|
| SBA 7(a) Loans | 10-15% | 10-25 years | 6-9% | First-time buyers with limited down payment | 45-90 days |
| Conventional Bank Loans | 20-30% | 5-15 years | 5-8% | Buyers with strong financials and experience | 30-60 days |
| Seller Financing | 10-30% | 3-7 years | 6-10% | Deals where seller is willing to finance portion | Negotiable |
| ROBS (Retirement Rollover) | N/A (uses retirement funds) | N/A | N/A | Buyers with substantial retirement savings | 2-3 weeks |
| Equipment Financing | 10-20% | 3-7 years | 6-12% | Asset-heavy business acquisitions | 1-3 weeks |
The Capital Stack Approach
Many successful business acquisitions use a combination of financing sources in what's called a "capital stack" approach. This strategy can help you optimize your financing structure and close deals that might not be possible with a single funding source.
Example Capital Stack:
- SBA 7(a) loan: 50-75% of purchase price
Primary financing with favorable terms
- Seller financing: 10-20% of purchase price
Demonstrates seller confidence and bridges financing gaps
- Buyer equity: 10-15% of purchase price
Your down payment from personal funds
- Equipment financing: For specific assets if applicable
Can free up capital for other purposes
Our AI technology can help you determine the optimal capital stack for your specific acquisition, taking into account the business's characteristics, your financial situation, and available financing options.
Ready to Finance Your Business Acquisition?
Let our AI match you with the right acquisition financing options for your specific situation.
Get Matched NowFrequently Asked Questions About Business Acquisition Loans
Get answers to common questions about acquisition financing and how our AI-powered platform can help.
Related Resources
Business Valuation Guide
Learn how businesses are valued and what factors impact the purchase price and financing options.
Read GuideSBA Loan Programs
Explore SBA loan programs that can be used for business acquisitions, including 7(a) and 504 loans.
Learn MoreAcquisition Success Stories
Read how other entrepreneurs successfully financed business acquisitions and grew their companies.
View Success Stories