Money to Buy a Business

Buying a business is an exciting journey. There are many things to consider and prepare for. Here are some places you should start looking for capital to purchase a business.

For loans of $1-$200,000 you should look to home equity lines of credit, peer to peer lending sites, credit cards and other lines of credit, family members and friends, and some smaller community banks and credit unions. These are your best sources for start up or acquisition capital. Loans of this size are not overly enticing to the business banking groups of most bank lenders.

For loans of $200,000 + you will want to pursue conventional or SBA financing solutions. Expect these loans to take some time to put together. There are many ways to qualify a business for an acquisition loan. These qualifying metrics are largely similar to SBA policy but vary from bank to bank. If you are denied on your first attempt it is a good idea to seek a second opinion.

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