The current owner lends you a portion of the purchase price, and you pay them back with interest over time. This bridges funding gaps and shows the seller's confidence in the future of the company.
Lenders evaluate both you and the business using a strict set of criteria: loan to buy existing business
Ideal for smaller or faster transactions. These fintech lenders prioritize modern performance data over hard assets but charge noticeably higher interest rates. š What Lenders Look For The current owner lends you a portion of
Lenders get nervous if more than 15% to 20% of the business's revenue comes from a single client. If that client leaves, the business could fail to pay the loan. š Essential Documents You Will Need š Essential Documents You Will Need Standard term
Standard term loans offered directly by commercial banks. They generally demand a higher down payment (often 20% to 30%), pristine personal credit, and hard collateral.