Buy an existing business
Business acquisitions, financed with SBA 7(a) term loans.
5–25%
Down payment range, depending on the loan program, the industry and the cash flow the business generated
10 years
Term to use in the loan payment calculator below
Experience
Banks will always want to see similar experience when you buy a business
Know what you are buying
Buying an existing business is a viable option before starting your own business, but careful and educated research into all operational and financial is essential. As the prospective business buyer, you must carefully analyze the existing business to be certain that it includes accurate and realistic information and it is what you expect to eventually run.
Financing options available
Helpful attachments, resources and links
Helpful attachments
Helpful resources
- Video – How to buy a business
- Video – What bankers look for in a manufacturing company
- Video – What bankers look for in a service company
- Video – How business bankers look at cash flow when underwriting a loan
- Video – What is an SBA 7a Loan?
Free coaching from your Small Business Development Center
Advisors at the Small Business Development Center (SBDC) help local small businesses get free coaching and advice to help grow or purchase a business.
Helpful links
- Reliant Valuations – Purchase a Business Valuation
- CBA – Commercial Multiple Listing Service
- BizBuySell
Local business brokers (Washington)
FAQ
What kind of down payment do I need to purchase a business?
This is a difficult answer as it is anywhere from 5-25%. This is dependent on the loan program, type of business the industry is in and the cash flow the business historically generated.
What kind of experience do I need?
Banks will always want to have similar experience when purchasing a business.
Do I need collateral?
Yes, the more collateral you have the better the loan process will go. Collateral is generally equity in a home- not vehicles, jewelry etc. The good news is SBA loans cannot turn you down for lack of collateral, but banks can, In general, banks will look for any available collateral to secure the loan.
