Financing Options

The world of finance is constantly changing.

When buying a business, there are traditional sources such as friends and family to finance a new business. You should have some expectation that your savings will be put to use in the purchase of a business. There are sometimes opportunities for seller financing. Finally there is institutional lending.

Institutional lending might include commercial lenders and Small Business Administration (SBA) guaranteed loans. SBA loans are made by commercial lenders and guaranteed by the SBA.

They can be used to buy the goodwill of a business. Additionally, many commercial lenders will loan on assets and real estate of the business without an SBA guarantee.

Below is a list of some financing opportunities, some of a creative style, to be considered in the pursuit of your dream. Your VR Business Broker can advise you on the applicability of these sources to your particular situation. You do not need to be an expert in financing. We will work with you to get the money you need.

Very Common

  • Cash equivalents (checking and savings accounts; money market funds).
  • Stocks and bonds.
  • Certificates of deposit.
  • Gifts/loans from friends and family.
  • Second mortgages and other real estate loans.
  • Seller financing.
  • Credit card financing.

Moderately Common

  • SBA financing/bank loans/bank lines of credit.
  • Retirement accounts (IRAs, 401Ks, SEPS, pensions, etc.).
  • Borrowing against a different existing business (lines of credit, accounts receivable factoring, inventory financing, equipment financing).
  • Asset sales (real estate, autos, etc.).


  • Customer and supplier financing.
  • Venture capital.
  • Small business investment companies.
  • Private placement.
  • Convertible debt financing.

Are you ready to learn more?

Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer.

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