Getting Money To Buy A Business Apr 2026

This sounds like a "Wall Street" term, but the concept is simple: you use the assets of the business you are buying as collateral for the loan to buy it. If the company owns real estate, heavy machinery, or has a massive inventory, a bank might lend you money based on the value of those physical things. 5. Using Your Own "Hidden" Capital

Often the first stop for a "down payment" to secure a larger bank loan. getting money to buy a business

Buying a business is less about having the full purchase price and more about A typical deal might look like 10% your own cash, 15% seller financing, and 75% an SBA loan. If the business has strong "cash flow" (the money left over after all bills are paid), that cash flow is what actually pays off the debt. This sounds like a "Wall Street" term, but