What types of financing are available for business acquisitions and what terms can I expect?
For business transactions with a purchase price of approximately $3 million or below, SBA is a viable financing option. The SBA 7a loan product can be used to finance up to $2 million of your business acquisition. Typically, this loan is fully amortized over ten years with no prepayment penalty. Although, the SBA website says that fixed rates are allowed for an SBA 7a loan, most SBA lenders only offer variable rates at prime plus 2-2.75%. To learn more about SBA loans or to get connected with an SBA lender, please contact us at (714)255-8862.
Other methods of financing include using credit lines, HELOC, commercial loans, seller financing, etc.
For larger business acquisitions we have realtionships with various commerical banks in and around Southern California. Please contact us at (714)255-8862 for more information. We are happy to provide referrals.