Business Acquisition Funding
Turn your entrepreneurial vision into reality with financing designed specifically for acquiring existing businesses, purchasing franchises, or buying out partners. We structure flexible deals that include working capital to ensure smooth transitions.
Business acquisition financing funds the purchase of an existing company, franchise, or partner buyout. Growth Fund Partners structures $100K to $5M with 5 to 10 year terms, down payments from 10%, and working capital included — often combining SBA 7(a) financing, seller notes, and your equity into one package.
How business acquisition financing works
Buying a business is fundamentally different from starting one. You are purchasing proven cash flow, an existing customer base, and operational infrastructure\u2014and lenders recognize that lower risk with longer terms and lower down payments than a startup could access.
Underwriting centers on the target company\u2019s cash flow. Lenders analyze historical revenue, adjusted owner earnings (seller\u2019s discretionary earnings or EBITDA), and the debt-service coverage ratio to determine whether the business can comfortably service the loan while paying you a reasonable salary. Your management experience and industry background also factor in\u2014especially for first-time buyers.
Most acquisition deals combine multiple capital sources: an SBA 7(a) loan for the bulk of the purchase price, a seller note on standby for 10 to 15 percent, and your equity injection covering the remainder. Growth Fund Partners structures these pieces into one cohesive package so the financing supports\u2014rather than complicates\u2014the deal.
When acquisition financing is the right move
Acquisition financing suits anyone who wants to own a business without the risk of a cold start. Common scenarios include:
- Full business purchase. Acquire the assets, goodwill, customer relationships, and brand of an established company.
- Franchise purchase. Finance the franchise fee, build-out, inventory, and initial working capital in a single package.
- Partner buyout. Take over a departing partner\u2019s equity stake while maintaining business continuity.
- Management buyout. Employees or managers acquire the company from a retiring owner, often with seller-assisted structuring.
- Expansion through acquisition. An existing business purchases a competitor, supplier, or complementary operation to grow revenue.
A quick example
A first-time buyer acquires a $750,000 landscaping business with $200,000 in annual owner earnings. An SBA 7(a) loan covers $600,000 (10-year term), a $75,000 seller note stays on standby for two years, and the buyer injects $75,000 in equity. Working capital is included so the new owner can operate from day one without a cash crunch.
Business Acquisition Loan Programs
Financing solutions for franchise purchases, partner buyouts, and management buyouts.
Franchise Financing Loans
Capital to Start or Acquire a Franchise Business
Partner Buyout Loans
Financing to Consolidate Ownership of Your Business
Management Buyout Loans (MBO)
Financing for Existing Management to Acquire the Business
Rates & Terms
Transparent, current terms for this program. Final pricing depends on the deal, collateral, and borrower profile.
| Loan amount | $100,000 – $5,000,000 |
|---|---|
| Interest rate | From Prime + 2.5% (Prime is 6.75%, July 2026) |
| Loan term | 5 – 10 years |
| Down payment | 10% – 20% buyer equity |
| Structures | SBA 7(a), seller financing, working capital |
| Time to close | 45 – 90 days |
SBA 7(a) Acquisition vs. Conventional Acquisition Loan
| Feature | SBA 7(a) Acquisition | Conventional Acquisition Loan |
|---|---|---|
| Down payment | As low as 10% | 20% – 30% |
| Max loan | $5 million | Varies by lender |
| Term | Up to 10 years | 3 – 7 years |
| Goodwill financing | Yes | Limited |
| Seller note allowed | Yes (on standby) | Sometimes |
| Best for | First-time & lower-equity buyers | Strong-cash, fast closings |
Process & Timeline
A straightforward path from first conversation to funded — with no surprises along the way.
Initial deal review (Day 1–5)
Share the target's financials, asking price, and your management background. We confirm the deal is bankable and recommend a loan structure.
Letter of intent & structuring (Day 5–14)
We outline the SBA portion, seller note, and your equity injection. You and the seller execute the LOI.
Business valuation (Day 14–30)
An independent valuation verifies the company's earnings, add-backs, and fair market value.
Lender underwriting (Day 21–60)
The SBA Preferred Lender underwrites cash flow, management capacity, and collateral while due diligence runs in parallel.
SBA authorization (Day 45–70)
The lender secures the SBA guarantee. Preferred Lenders can authorize in-house, which saves weeks.
Close & ownership transfer (Day 60–90)
Loan documents are signed, funds are disbursed — including working capital — and you take the keys.
Sources & Market Data
- SBA 7(a) acquisition lending reached $8.29 billion across 7,003 deals in 2025, and the SBA delivered a record $45.1 billion overall in FY2025. U.S. Small Business Administration, SBA Delivers Record Capital to Small Businesses in FY25 (September 2025).
- In the 2025 Small Business Credit Survey, 42% of applicants received the full financing they sought. Federal Reserve Banks, 2026 Report on Employer Firms (Small Business Credit Survey) (2026).
What to watch out for
The most common pitfall in business acquisitions is overpaying. Make sure the valuation is supported by the company\u2019s actual trailing cash flow\u2014not projections. Lenders underwrite based on what the business has done, not what a seller says it could do.
Cash flow timing matters, too. Even a profitable business can have lean months after a transition\u2014clients adjust, key employees shift, and processes change. Include enough working capital in the deal to weather six months of reduced revenue without distress.
Finally, perform thorough due diligence on liabilities: unpaid taxes, pending litigation, outstanding vendor obligations, and lease assumptions. A clean asset purchase protects you from inheriting problems that predate your ownership. For a deeper walkthrough of deal structuring, read our business acquisition funding guide.
Frequently Asked Questions
Straight answers to the questions borrowers ask us most.
You can finance a business purchase from $100,000 to $5 million through Growth Fund Partners, often combining SBA 7(a) loans, seller financing, and your own equity. We evaluate the target company's cash flow and your experience to structure a deal that works for you.
Most business acquisition loans require a 10% to 20% down payment, with SBA 7(a) financing allowing as little as 10%. A portion can sometimes come from seller financing held on standby, reducing the cash you need to bring to close the deal.
A credit score of 680 or higher strengthens your business acquisition application, though the target company's cash flow is equally important. Lenders want to see that the business generates enough profit to comfortably cover the loan payment plus a reasonable salary for you.
Yes. SBA 7(a) loans are one of the most popular ways to buy an existing business, offering up to $5 million, low down payments near 10%, and terms up to 10 years. They work for full acquisitions, partner buyouts, and franchise purchases.
Business acquisition financing typically takes 45 to 90 days to close, largely due to due diligence, business valuation, and SBA processing. Starting early, organizing the seller's financials, and working with an experienced lender helps keep your closing on schedule.
Acquisition funding can cover the purchase price, working capital, inventory, equipment, and even closing costs. With terms from 5 to 10 years, you can also finance partner buyouts and franchise fees, giving you the capital to operate and grow after taking ownership.
Ready to Acquire Your Next Business?
Our acquisition specialists can evaluate your opportunity and structure financing that makes your deal work.