Loan To Buy Existing Business Apr 2026

The current owner lends you a portion of the purchase price, and you pay them back with interest over time. This bridges funding gaps and shows the seller's confidence in the future of the company.

The gold standard for business acquisitions in the U.S.. They offer up to $5 million with repayment terms typically lasting 10 years. You can often put down as little as 10%. loan to buy existing business

A strong personal credit score is mandatory. Lenders also want to see that you have "post-closing liquidity"—cash left over in your personal account to cover emergencies. The current owner lends you a portion of

The target company’s historical profit (often measured as EBITDA) must comfortably cover your future loan payments while leaving room for operations. They offer up to $5 million with repayment

Be prepared to hand over an extensive paper trail during underwriting: Business Acquisition Loans: A Guide for Businesses - Stripe

Standard term loans offered directly by commercial banks. They generally demand a higher down payment (often 20% to 30%), pristine personal credit, and hard collateral.