How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 6 business acquisition loan options
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
TAB Bank - Term loan with Fundera by NerdWallet | Best for Bank small-business acquisition loans | $200,000 | 650 | with Fundera by NerdWallet |
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA business acquisition loans | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for SBA business acquisition loans | $500,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Online business acquisition loans | $500,000 | 660 | with Fundera by NerdWallet |
Credibility Capital - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Online business acquisition loans | $500,000 | 650 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Business acquisition loans for equipment | $250,000 | 600 | with Fundera by NerdWallet |
Here are 6 business acquisition loan options
Best for Bank small-business acquisition loans
Best for SBA business acquisition loans
Best for Online business acquisition loans
Best for Business acquisition loans for equipment
Our pick for
Bank small-business acquisition loans
TAB Bank - Term loan
with Fundera by NerdWallet
Max loan
$200,000
Min. Credit score
650
Apr range
8.99-35.99%
with Fundera by NerdWallet
Our picks for
SBA business acquisition loans
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
10.00-12.50%
SBA Express loan
Max loan
$500,000
Min. Credit score
650
Apr range
12.25-14.25%
Our picks for
Online business acquisition loans
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
5.99-16.49%
Credibility Capital - Online term loan
Max loan
$500,000
Min. Credit score
650
Apr range
9.49-15.49%
Our pick for
Business acquisition loans for equipment
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
600
Apr range
5.99-35.00%
with Fundera by NerdWallet
Minimum requirements for a loan
The Nerds are here to help you find the right loans for your business needs.
550 or higher
at least $50k
6 months or more
How Much Do You Need?
Pros
- Lessens the upfront costs associated with your acquisition. Instead of relying exclusively on your existing capital reserves or personal savings, a business acquisition loan can help cover some of the costs associated with purchasing another company. You can utilize these funds as necessary and pay them back over time. Plus, these loans typically have long terms and a monthly payment schedule — making it easier for you to manage repayment while building your new business.
- Collateral requirements may be flexible. If you’re hesitant to put your physical assets at risk, some acquisition loans may not require collateral. SBA 7(a) loans, for example, don’t require collateral for loan amounts under $25,000. In addition, equipment financing doesn’t typically require collateral because the equipment itself serves as collateral on the loan.
Cons
- Can be hard to qualify. Because you’re looking for a loan to purchase another company, lenders want to see that you are reliable, experienced and have the ability to repay your debts. As a result, they often require that you have good credit, strong finances and an established business background. Many lenders also require a down payment — and some require collateral, although this isn’t always the case. Some lenders may be willing to work with borrowers with bad credit, but they’ll also charge higher interest rates.
- Interest costs may impact your bottom line. Although you can use your business acquisition loan to cover the costs of purchasing and running another company, you’ll also be making repayments, which includes interest, while trying to get started. These interest costs can quickly add up — especially if you’re struggling to maintain a stable cash flow. And loans with higher interest rates may make it even more difficult to manage payments along with additional startup costs.
Banks and credit unions
SBA lenders
Online lenders
- Equipment financing. If your business acquisition includes equipment, you might use an equipment loan to finance part of your purchase. Or if you’re buying a business that relies heavily on equipment, such as a construction business, you may be able to find an equipment loan to cover a majority of the costs. With equipment financing, the equipment itself serves as collateral on the loan.
- Seller financing. With seller financing, you’re borrowing the capital you need to purchase the business directly from the current owner. You work with the owner to create an agreement regarding terms and interest and then repay the owner directly. This type of arrangement might be easier than working with a third-party lender, if the seller is willing to offer it.
Check your qualifications
Prepare your acquisition information
Complete your application
- Financial statements for the business you’re purchasing.
- A business plan.
- Post-purchase sales projections.
- Proof of collateral and/or a down payment.
- A business valuation of the company you’re purchasing.
- A letter of intent with the terms of sale between you and the current owner of the business.