Loan amounts $250,000 to $7,500,000
A business acquisition loan allows you to buy someone else’s existing, profitable business. It also allows you to buy out your partner(s) for a business you already own. In addition, business acquisition loans can be used to finance the purchase of a well-established business with many locations and a proven model for success. It’s best to use a business acquisition loan to purchase a thriving company; turnaround financing is much more difficult to secure.
How Business Acquisition Loans Work
To secure small business acquisition financing, you’ll need to prove that both you and the business present minimal risk to the lender. You can do this by providing ample documentation of both your personal finances and the business’s finances. Good credit, minimal debt, and profitability are key. Terms can vary on the amount of the loan.
Loan amount to not exceed 60% of total purchase price
Purchase and Sale documents between seller and buyer
Financials for last three years plus YTD for acquisition
Three years tax returns for acquisition
Inventory list for acquisition
Projections after acquisition
Proof of capital for down payment
Buyer’s company financials for the last three years (if applicable)
For each owner (10% or more) of the company, provide the following:
Three years personal tax returns
Personal Financial Statement