Business Acquisition Loans — Buy an Existing Business
Buying an existing business is one of the fastest paths to entrepreneurship. With established revenue, customers, and operations already in place, you skip the startup phase entirely. 3A Lending provides acquisition financing with up to 90% loan-to-value, giving you a clear path to business ownership.
What Business Acquisition Financing Covers
How SBA Acquisition Loans Work
The SBA 7(a) program is the most common vehicle for business acquisitions. It allows buyers to finance up to 90% of the purchase price, with just 10% down from the buyer. The SBA guarantee reduces risk for lenders, making it possible to finance acquisitions that banks might otherwise decline.
For larger deals involving commercial real estate, a combination of SBA 7(a) and 504 loans can be structured to maximize financing and minimize out-of-pocket costs. 3A Lending specializes in structuring these multi-program deals to get the best terms for buyers.
What Lenders Look For in Acquisition Deals
Why Buy Instead of Start?
Ready to Buy a Business?
Whether you've found the perfect business or are just exploring options, we can help you understand your financing.
Frequently Asked Questions About Business Acquisition Loans
How do I finance buying an existing business?
The SBA 7(a) program is the most common vehicle for business acquisitions. It allows buyers to finance up to 90% of the purchase price with just 10% down. For larger deals involving real estate, a combination of SBA 7(a) and 504 loans can maximize financing.
What do lenders look for in a business acquisition deal?
Lenders evaluate industry experience, the business cash flow (typically 1.25x debt coverage ratio), down payment (10% minimum for SBA), personal credit score (generally 680+), an independent business valuation, and a clear transition plan.
How much down payment do I need to buy a business?
With SBA financing, the minimum down payment is typically 10% of the purchase price. Conventional loans usually require 20-25% down. Seller notes can sometimes be structured as part of the equity injection to reduce the cash required.
Can I use an SBA loan to buy a franchise?
Yes. SBA 7(a) loans are commonly used for franchise acquisitions. The SBA maintains a list of approved franchises that qualify for expedited processing. 3A Lending can help you navigate the franchise financing process.