Most individual buyers need to partially finance their business purchase. Typically,
there are two ways: seller financing if the seller is comfortable with your qualifications,
or institutional financing such as Small Business Administration (SBA) guaranteed
loans, that are very difficult to obtain today! Larger deals become more complex and
may include seller earn-outs, stock purchases, etc. that require careful construction
by multiple advisors to both the buyer and the seller.
For most buyers, institutional financing will typically be limited to SBA-guaranteed
loans and your 401k savings plan (there are ways to use 401k funds to purchase a
business without tax liability). Of course there are family and friends, which we term
"angel investors!" This page includes some links to help you decide what might be
best for you. Our brokers can suggest business lenders and equipment leasing
companies if you require.
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