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 7 business acquisition loan options
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
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 Fast SBA business acquisition loans | $500,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Online business acquisition loans | $500,000 | 660 | with Fundera by NerdWallet |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Business acquisition loans for equipment | $250,000 | 575 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Business acquisition loans for expanding an existing business | $250,000 | 625 | with Fundera by NerdWallet |
National Funding - Online Term Loan with Fundera by NerdWallet | 4.0/5 Best for Business acquisition loans with expanded credit qualification | $500,000 | 600 | with Fundera by NerdWallet |
TAB Bank - Term loan | Best for Bank small-business acquisition loans | $300,000 | 660 | |
Here are 7 business acquisition loan options
Best for SBA business acquisition loans
Best for Fast SBA business acquisition loans
Best for Online business acquisition loans
Best for Business acquisition loans for equipment
Best for Business acquisition loans for expanding an existing business
Best for Business acquisition loans with expanded credit qualification
Best for Bank small-business acquisition loans
Max Amount
$300,000
Min. Credit Score
660
I'M INTERESTED IN:
Our pick for
SBA business acquisition loans
SBA 7(a) loans offer competitive rates and terms and maximum loan limits of up to $5 million. They can be a good option when you don’t meet bank eligibility requirements but still have good credit and strong finances.
SBA 7(a) loan
with Fundera by NerdWallet
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
with Fundera by NerdWallet
Our pick for
Fast SBA business acquisition loans
SBA Express loans can typically offer faster approval times along with the same basic features as 7(a) loans — as long as the funding amount does not exceed the $500,000 maximum loan limit.
SBA Express loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
650
Apr range
11.50-15.00%
with Fundera by NerdWallet
Our pick for
Online business acquisition loans
Funding Circle term loans can be used for growth and expansion, as long as your business has been in operation for a minimum of two years.
Funding Circle - Online term loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
with Fundera by NerdWallet
Our pick for
Business acquisition loans for equipment
Triton Capital offers equipment financing with flexible payment options of monthly, quarterly, annually, semi-annually or seasonally.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
with Fundera by NerdWallet
Our pick for
Business acquisition loans for expanding an existing business
Term loans up to $250,000 are offered by OnDeck to business owners who want to expand their establishment and have a minimum credit score of 625.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Business acquisition loans with expanded credit qualification
National Funding offers term loans up to $500,000 that can be used for any business purpose and a flexible minimum credit score requirement of 600.
National Funding - Online Term Loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Bank small-business acquisition loans
TAB Bank offers term loans ranging in size from $30,000 to $300,000 with competitive interest rates and an online prequalification process.
TAB Bank - Term loan
Max loan
$300,000
Min. Credit score
660
Apr range
8.99-35.99%
What is a business acquisition loan?
How do business acquisition loans work?
Business acquisition loan requirements
- Business valuation.
- Letter of intent.
- Sales agreement.
- Franchise agreement, if applicable.
- Business financial statements.
- Business tax returns.
- Contracts and leases.
Pros and cons of a business acquisition loan
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.
- Collateral requirements may be flexible. 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 serves as collateral on the loan.
- Loan process can move faster than a traditional loan. Because of the preparation required for a business acquisition, by the time you sit down with a lender, the actual loan application process can go fairly quickly.
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 and 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. However, some lenders may be willing to work with borrowers with bad credit, but they’ll also charge higher interest rates.
- Interest costs may affect your bottom line. A business acquisition loan can cover the costs of purchasing and running another company, but you’ll also be making repayments, which includes interest. The interest cost on loans with high interest rates can affect your cash flow and monthly budget.
- May require a down payment. You may be asked for a down payment on acquisition loans ranging from 10% to 30% or more depending on the lender and the loan amount. This can differ from other business loans and even some startup loans, which may not require a down payment.
Where to get a business acquisition loan
Banks and credit unions
SBA lenders
Online lenders
How to get a business acquisition loan
- Determine if you qualify for the business loan.
- Compare lender offers.
- Gather your application information based on lender requirements.
- Apply for the loan online or in person, depending on the lender.
- Review your loan agreement.
- Receive funding.
Alternative options for business acquisition financing
Seller financing
Equipment financing
Find the right business loan
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.