Business Acquisitions Financing Option: $25,000 – $5,000,000
Business Acquisition Financing is one of SEG Funding’s main specialties! Business Acquisition Financing, capital you need for the acquisition to buy an existing business or franchise. SEG Funding successfully financed business acquisitions across a variety of industries nationwide.
A Business acquisition loan if very complex and can easily be declined if a buyer doesn’t do the proper steps. There are many compliance components analyzed when a lender funds an acquisition. Depending on the type of business being acquired, these can be funded with a couple loan products independently, or combined loan products (i.e. SBA loan, term loan, a line of credit, asset-based lending, etc). Favorable rates for acquisition financing can help smaller companies reach their financial goals and is generally viewed as an effective method for increasing the size of the company’s operations.
Securing business acquisition financing with favorable terms is possible. A business acquisition loan simply requires a little more preparation and flexibility by both the buyer and seller. Business acquisition financing can be used for financing the purchase of an existing company, refinancing, or purchasing a franchise. It also can merge with another company or buy out ownership of an owner. Down payments are typically required and occasionally the lender will leverage any of the existing assets as collateral of the purchased company to minimize the requested down payment. If you don’t have a down payment, partial seller financing may be allowed in conjunction with the new term loan from the lender.
Occasionally there are multiple buyers interested in purchasing the same business you are trying to acquire. The number one reason Business Acquisitions fail is that the borrower pursued the wrong lender. Secondly is the Buyer is not in Compliance. Therefore, these transactions are time sensitive and working with the correct lender right away is imperative.
At SEG Funding, we make sure you get the best approval, rates, terms and the loan structured in the shortest amount of wait time possible. We have developed a network of funding sources to ensure that every one of our clients has the best possible chance securing the loan they need.