How to Finance a Business Acquisition
March 23, 2026
Financing a business acquisition can seem daunting, but there are more options available than most buyers realize.
SBA Loans
The Small Business Administration (SBA) 7(a) loan program is the most popular way to finance a business purchase. These loans offer competitive rates, long repayment terms, and can finance up to 90% of the purchase price.
Seller Financing
Many sellers are willing to finance a portion of the sale price. This is often seen as a positive signal — if the seller believes in the business enough to carry a note, it builds buyer confidence.
Conventional Bank Loans
Traditional bank loans can work for well-qualified buyers purchasing established businesses with strong cash flow and hard assets.
Rollover for Business Startups (ROBS)
If you have retirement funds, a ROBS arrangement lets you use 401(k) or IRA funds to buy a business without early withdrawal penalties.
The best deals often combine multiple financing sources. Work with a broker and an SBA-experienced lender to put together the right package for your situation.