Most business buyers will use a business loan to buy a business.
We can help a business buyer obtain an SBA business loan. This is desirable for both parties. The seller finances little or none of the sale. An SBA 7A loan allows the buyer to put down a lower down payment, typically 10-20% of the purchase price, and finance the purchase over a longer time, up to 10 years. An SBA 504 loan can be paid over 20 years if it finances the purchase of real estate or equipment. We are getting businesses pre-qualified for SBA loans to help sell them and make them more attractive to buyers. We advertise the low down payment that is required to buy the business. Our Confidential Business Review helps a buyer obtain financing by providing a report about the business that they can use when applying for a business loan.
In order for a business buyer to obtain an SBA loan, the business and the buyer need to qualify. The business, through its tax returns, must show that it provides enough money to pay the buyer’s income needs, repay the SBA loan, and provide a margin of safety. The buyer must be creditworthy and have satisfactory business experience.