What are Business Acquisition Loans?

Business acquisition loans are not something that everyone has to deal with. Only a few entrepreneurs out there that are looking to grow their business will have to utilize business acquisition loans. Some people will have to utilize them more than once if they are trying to grow an empire.

Business acquisition loans can also be used to buy out a partner in a company. It is a structured form of financing that will help you create attractive terms for all parties.

There are many different options out there for financing your next business acquisition. Some you may have considered. Others that you may just be learning about. Taking the next step when acquiring a business is a huge decision and it can impact you for the rest of your life. That is why determining the right type of acquisition loan for you is important. So what type of business acquisition loans are out there?

Bank Financing

Traditional bank loans will typically ask you to but 20% down at the beginning. You will then pay a fixed monthly payment every month until the loan has been paid off. Depending on what type of funding you are applying for, the terms can be different. For example, if you are applying for an SBA loan there is less flexibility in the way you can structure the deal.

Bank financing can be extremely hard to secure especially if you have no business credit or poor personal credit.

Seller Financing

In this funding scenario, the seller develops its own offerings for business acquisition loans. The seller acts as the bank would and collects the payments directly from the buyer. The buyer will pay their down payment directly to the seller and continue to make payments directly to the seller. The benefit to both parties is there is no set amount that has to be paid for the down payment and the terms are negotiable. Both parties simply have to agree on the terms to get the deal done.

This is also a more personal option because the new business owner is working directly with the seller who has usually invested their own time and money into the business. The seller has a desire to see the business succeed. The buyer and the seller can determine the best form of payment. This can be through a portion of sales or a fixed amount each month. This is also the fastest way to closing on a true loan product.

Alternative Financing

Because of the times we live in and the increased regulatory environment we are exposed to on a daily basis, getting approved for traditional funding is difficult. Because of this, alternative providers have been popping up all over the world. Most alternative providers offer their customers a digital experience and a user-friendly application process. These products are often not regulated like the banks so the process can feel much smoother to customers.

One alternative lending product you may want to consider is a merchant cash advance. This is a quick way to get the funding you need in hand quickly. You can even use this option with seller financing to pay the seller a down payment for the business. Typically we see that while acquisitions are being completed, the business owner needs helping with cash flow as they get the new business operational.

So are you ready to be your own boss? Why choose traditional business acquisition loans which can take weeks if not months to get the funding in your account? We can get you the cash in your hands to get the deal done in just three days. All you have to do is apply.

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Call eBusiness Funding at 305-985-6593 or complete the contact form on this page.

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What are Business Acquisition Loans?
Dreaming of buying an existing company? You may require business acquisition loans to get the job done. This simple hack can get you $500k in 24 hours.
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