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I want to purchase a business for 300k, have 150k down, seller wont finance 50% where to find funding? tony

The seller feels that 50% note is too high so he will hold less, where can I find acquisition funding to bridge the gap? sale lease back? on equipment? The company is a structural steel fabrication plant.

tony lyons

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Answers (7)
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Biz2Credit LLC
New York County, NY


You should take around 10% from the seller while you are putting down 50% so for the rest of 40% try out

A lot of factors go into qualifying a for a business loan. Lending institutions scrutinize a business owner's personal credit, business credit, location, industry, years in operation, assets and cash flow differently. The best way to search for financing is to enter you information on If you meet the general criteria of a lender or a bank on the system, you'll be matched with them. If you don't meet any of the lender criteria, the system will educate you as to why you didn't fit the criteria and what you can do to qualify in the future. It's a great system and it's free. Good luck.

Apr 2, 2010
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Cowboy Business Group
Utah County, UT

My advice would be to only consider businesses where the seller will carryback 20% or more, then seek SBA for 50%, you put in the difference. If the seller is reluctant to finance a portion of the sale, then I would view that as a red flag. SBA will loan on cash flow based on your background and other factors. Or, as others have suggested, you can borrow against assets, but you might get 30-40% of value. Good luck. If you need a negotiator, I'd be happy to assist.

Apr 1, 2010
Buy-a- Company


Will the seller carry back ANY financing at all? Are there any assets that you could borrow against? Would you consider partnering with another buyer? There are so many possibilities.

Mar 29, 2010
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Lay Management Corporation
Chief Executive Officer
Clayton County, GA


Mar 28, 2010
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LRPS/PT Profits RE
Owner, Aquisitions Broker, Mortgage Banker
Orange County, CA

I agree with CB in that their needs to be more information to give you a better answer. I'm a acquisitions broker and mortgage banker. However, here's a couple of things to look at with your deal, that could cause a lender to only go so high. The financials for the business, is real estate included or excluded in the purchase, how much money besides the 150K you are putting down do you have left (3-6 months expenses worth?) location, age of building, parking, etc. There maybe some of the things that you hadn't though of or it may just be the people/bank your using only do loans less than 50% in that case, walk away and find a new lender. I know over 200. I'd be glad to here help you and answer any questions, or look over your deal and see how to save it. You can reach me at I hope this helped

Mar 20, 2010
No User Photo

In my opinion, there are simple answers to your questions that might solve your problem and then there are more complex answers that probably have a greater chance of working. Most people don't want to admit that the credit crunch has made it extremely difficult to get small business financing. I think the use of sales lease-back financing is a great way to approach it but the transaction would have to be straegically well structured in order to faciliate that type of financing because a sales lease-back lender would want you to have ownership of the assets beforehand. I spent most of my adult life in private equity so I've seen quite a few deals in my day. If you'd like to continue dialogue regarding this email me a

Mar 19, 2010
Dustin Zeher
Horizon Business Brokers, LLC
Premium Broker

You should be able to go to any bank that provides commerical loans. Try your local banks as they are usually more willing. If you are putting 50% down to purchase the business most banks will finance the other 50% if you can secure it. If you cant secure the loan you might be able to get a SBA loan.

Dustin Zeher
Principal Broker
Horizon Business Brokers, LLC.

Mar 19, 2010

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