Ever since the economic collapse of 2008, business acquisition loans have been hard to come by, especially for small businesses. Banks today are much more stringent about who they finance and even more cautious about what business the borrower wants to acquire. In the banks perspective, if so many businesses are either struggling or failing, who would want to acquire them?
Despite business owners’ concern about low access to credit, business acquisitions loans are still available. You just have to know where to look. There are three main ways to finance a business acquisition:
- Traditional lenders (banks and credit unions)
- The Small Business Administration
- The seller of the business you are acquiring
Business Acquisition Loans Through Banks
Banks typically offer the best rates and terms for business acquisition loans. Unfortunately, it seems like only the perfect-credit borrower with the perfectly priced acquisition can land such a loan. However, getting a ...