Where to Find a Small Business for Sale

The person selling you the business may be willing to loan you the money to buy the business. For example, if you have a lot of experience working in retail, then buying a retail shop or boutique might be a good fit for your skills and experience. Buying a business can be a good way to skip some of the startup costs and growing pains of starting a business from scratch, like launching a product or service or building a customer base. Before becoming a money nerd, he has nearly a decade of experience as a writer, editor and digital marketing strategist.
However, the lender will file a lien on your business assets and require you to sign a personal guarantee. A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest. We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation.

You can use different types of loans to fund the acquisition of another business. Before applying for any loan, check out our guide on how to get a small business loan want to buy a business need a loan for tips on what you can do to improve your odds of getting approved at the best possible rates. Yes, it’s possible to get a business loan to buy an existing business.

In addition to comparing interest rates, business owners should watch out for one-time fees and ongoing borrowing fees to estimate short- and long-term costs. Asking questions and negotiating interest rates, fees and repayment terms is the best way for borrowers to customize a product to fit their needs and budget. In some cases, the previous owner of the business may be willing to accept a down payment and let you pay off the rest of the purchase price in instalments over time. The vendor will generally expect you to contribute a significant portion of the business’ value upfront, so you’ll need some initial capital or a deposit. A secured business loan is the cheapest option for business acquisition finance. It involves using residential property as collateral for the loan in exchange for lower interest rates.
We looked at more than 20 lenders who offer small business loans, small business lines of credit, and unique funding options like invoice factoring. Kabbage offers a variety of small business loans and options for a line of credit, including both unsecured and secured options. You can also apply for industry-specific loans for trucking, pawnshops, retail, and more. Kabbage prides itself on its easy online application process and fast funding for those who are approved. The best small business loans have convenient application and funding processes, with competitive fees and flexible terms.

Applications for 2023 grants will open on May 16, 2022, and close on July 15, 2022. A single application enters you for all grants that you and your business are eligible to receive. The organization reviews the applications it receives each month and announces new monthly grant winners by the 23rd of the following month. The organization awards at least $35,000 in grant money each month. The funding is available to eligible women-owned businesses whose applications stand out to the selection committee. If you don’t even know where to start when it comes to buying a business, a broker can help you move in the right direction.
Georgia has written extensively about small business finance, specializing in business lending, credit cards and accounting solutions. With SBA loans, the Small Business Administration partially guarantees a portion of the long-term financing that banks and other SBA lenders make. The guarantee makes the loan less risky for the lender, so they are more likely to approve the borrower. The SBA also sets maximum interest rates for these loans, and the rates range from 5% to 10%. Almost all of the recognizable, national banks offering lending products. Wells Fargo, Chase, and PNC are popular lenders among small business owners.
Refinance calculator Decide if mortgage refinancing is right for you.Loading... Veteran Home Loan Center Discover the benefits you have as a Veteran. If a business encounters a promising opportunity, a small business loan can enable them to take advantage of it. When starting a business, a loan may be necessary to cover initial expenses such as rent, equipment, inventory and employee wages. You can use crowdfunding platforms like Kickstarter or Kiva to find interested parties. You usually reward your small business investors with perks like your product, swag or equity, depending on the level of investment.

A second important eligibility factor in getting a business loan is your annual revenue. If your business has been impacted by the coronavirus pandemic and you’re looking for loans specific to COVID-relief, refer to our coronavirus business loans guide. Business plans vary by industry but  should generally include an executive summary of what the company does and why it will be successful. That said, applying for an SBA loan can feel daunting because of the eligibility requirements and application procedures imposed by individual SBA lenders.
Like mortgages designed for the purchase of owner-occupied residences, you have more than one option when you’re shopping for the perfect investment property loan. This is true whether you’re taking out a loan for a new rental property or are refinancing an existing investment property loan. A rental property loan is a commercial real estate loan designed to help investors purchase a property that will be rented out to tenants, whether they are residential or commercial tenants. These types of loans are only given for properties you will not be living in, but strictly purchasing to generate income or sell for a profit. This online survey of 750 business owners was commissioned by Forbes and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research .

This process will allow you to see, after taking on a potential loan, how much you’ll need to increase your revenue each year to break even and then become profitable. TruckLenders USA provides financing for almost any type of commercial equipment—as long as it has wheels, a valid title and is no more than seven years old. Loans range from $15,000 to $250,000, and the lender’s jumbo leases are available for up to $1 million. This spread is subject to SBA maximums, which vary based on your loan size and term length.
This helps entrepreneurs manage smaller monthly payments and have greater control over their cash flow. Crowdfunding and peer-to-peer lending are two less traditional financing options worth exploring. Crowdfunding involves raising money from your network to finance your business venture. The National Women’s Business Council found that women are especially successful with crowdfunding, beating out male business owners in terms of their success rate by 4.6%. Business loan fees are often unavoidable and can make borrowing more expensive.
A home is a major purchase — maybe the biggest one you'll ever make — so it's no surprise that lenders really dig into borrowers' finances before handing out house loans. If you've got substantial debt or don't have much of a credit history, you may want to improve your financial health before applying for a mortgage. In fact, the FSA offers a direct farm ownership loan specifically designed to help borrowers buy a farm or ranch.

SBA 7 loans are available up to $5 million, and repayment terms vary depending on the purpose of the loan. SBA 7 loans are flexible and used for a wide range of purposes, including starting a new business or purchasing new equipment or property. In most traditional SBA-guaranteed loans, the borrower is expected to provide at least a 10% equity injection.