Learn how you can access SBA Acquisition loans to buy a business with minimal equity injection and favorable terms.
A few years ago, Neal was running a successful digital marketing agency. He had a great team, loyal clients, and steady income. But he was feeling restless.
He wanted to try something new, something different and wanted to own an online business.
So he started browsing online marketplaces, looking for opportunities. And then I saw it: a niche e-commerce site that sold organic skincare products.
It had a loyal customer base, a strong brand, and a proven track record of profitability. It was making $10,000 a month in revenue, and it had the potential to grow even more.
Neal was in love.
He contacted the seller and asked for more details. The owner told him that he was selling the business because he wanted to retire and travel the world.
He said he was willing to negotiate, but he had a minimum price in mind: $250,000.
That’s when Neal's heart sank. $250,000 was way out of his budget.
He simply didn’t have that kind of cash lying around. Neal thought that he would have to say goodbye to his dream, until he learned about SBA Business Acquisition loans for buying existing companies with Spartan Coaching & Consulting, and that he’d only have to put 5% down..
Have you ever dreamed of owning your own business?
Maybe you have a great idea, but you don’t have the time or resources to start from scratch. Or maybe you want to expand your current business by acquiring another one. Whatever your reason, buying an existing business can be a smart move.
You can skip the start-up phase, leverage the existing customer base and reputation, and generate revenue right away.
But there’s one problem:
Buying a business can be expensive. And if you don’t have enough cash on hand, you might think that your dream is out of reach.
That’s where Spartan comes in.
We help you access SBA Acquisition loans for business acquisition with minimal equity injection and favorable terms. With an SBA Business Acquisition loan, you can buy an existing and profitable business with as little as 5% down, which can be sourced from a gift.
Sounds too good to be true?
It’s not. Here are some of the features and benefits of an SBA business acquisition loan from Spartan Coaching & Consulting.
Preserve Liquidity
One of the biggest challenges of buying a business is coming up with the down payment. Conventional banks may require you to put down 20% or more of the purchase price, which can deplete your cash reserves and limit your growth potential.
The 5% Can Be Sourced From A Gift
With an SBA Acquisition loan, you can buy a business with as little as 5% down, which can be sourced from a gift. This means you can preserve your liquidity and use your cash for other purposes, such as working capital, inventory, marketing, or hiring.
Buy a Business with Real Estate
Another advantage of buying a business with an SBA Acquisition Loan is that you can also purchase the real estate associated with the business. This can give you more stability, control, and tax benefits than renting a space.
With an SBA Acquisition loan, you can finance up to 90% of the value of the real estate, with loan terms of up to 25 years and fixed interest rates.
This can help you avoid rent increases, build equity, and enjoy depreciation deductions.
Extended Loan Terms
One of the reasons why SBA loans are so attractive is that they offer longer repayment periods than conventional loans. This can lower your monthly payments and improve your cash flow.
With an SBA loan, you can get loan terms of 10 years to 25 years, depending on the type and size of the business you’re buying. You’ll also benefit from SBA-backed interest rates, which are typically lower than market rates.
Loans Up to $10 Million
If you’re looking for a larger acquisition, an SBA Acquisition Loan can help you achieve your goals. With Spartan, you can pursue acquisitions up to $10 million by combining an SBA Acquisition Loan and a conventional bank loan.
We’ll help you structure the deal in a way that maximizes your financing options and minimizes your out-of-pocket costs.
You’ll get the best of both worlds: the flexibility and affordability of an SBA Acquisition Loan and the speed and convenience of a conventional loan.
SBA business acquisition loans:
- The SBA guarantees 85% of your loan if it’s less than $150,000 and 75% if it’s more than $150,000.
- With an SBA loan, you can finance up to 90% of the value of the real estate associated with the business you’re buying
- With an SBA loan, you can get loan terms of 10 years to 25 years, depending on the type and size of the business you’re buying
- The SBA approved $28.6 billion in 7(a) loans in fiscal year 2020, helping over 42,000 small businesses buy or expand their businesses
- The average loan size for business acquisition loans was $1.4 million in 2019, according to Dun & Bradstreet
How to Get Started
If you’re ready to take the next step in buying a business with an SBA Acquisition loan, here’s what you need to do:
- Answer a few simple questions to let us know more about what you’re looking for and check eligibility.
- We’ll connect you with a business loan specialist who will help match you with the best option for your business. With over 100 lending partners, we’ll work together to find the right solution for you.
- Your loan specialist will guide you through the application process, assisting you in preparing and submitting all the necessary documentation.
- Get funded and start growing your business.
Buying a business with an SBA Acquisition Loan can be a great way to achieve your entrepreneurial dreams. You can access financing with minimal down payment, favorable terms, and flexible options.
Whether you’re just getting started or expanding, Spartan can help you find the best SBA Acquisition Loan for your business acquisition. We’ll guide you through the process from start to finish, ensuring a smooth and successful closing.
