Business Acquisition Loan

SBA Loans For Purchasing Businesses

Empowering Entrepreneurs By Lending Solutions

Why Purchase A Business?

Acquiring an established business offers numerous advantages for prospective owners compared to starting from scratch:

Reviewable Financial History: Access historical financial records to assess past performance, profitability, and identify potential areas for improvement.

Proven Brand and Market Reputation: Leverage the strength and recognition of an existing brand.

Established Customer Relationships: Benefit from a loyal customer base and strong connections between the business and its clients.

Experienced Workforce: Gain a knowledgeable and seasoned team already familiar with the operations and clientele.

Smooth Transition: The potential for seller support during the initial months ensures a seamless handover and continued success.

Business Acquisition Loan: Secure financing through business acquisition loans, which offer favorable terms to purchase an existing business and tap into its established value.

Tips To Succeed

A key trait of successful business buyers is possessing industry-specific experience or skill sets that are directly applicable to the business they intend to acquire. This is why evaluating how your background can enhance the business you wish to purchase is crucial. At Axelrad Capital, we prioritize understanding your industry expertise when you apply for financing.

Sellers often favor offers from qualified buyers, as they want to ensure the continued success of their business and the well-being of their employees and customers. Demonstrating your capability and experience increases the likelihood of your offer being accepted.

Support systems such as an established franchise network, seller support during the transition, and retaining key employees are also critical for a smooth ownership transition and sustained business success.

Axelrad Capital will consider all these factors to fully realize the potential of your business acquisition loan. Our goal is to help you succeed by structuring financing that aligns with your business objectives and facilitates your growth.

Call (800) 554-9046 for our rates!

Why SBA Financing

A significant number of small business acquisitions loan are facilitated through SBA financing, offering several advantages to the prospective business owner. Financing with Axelrad Capital to purchase a business provides several benefits over conventional financing:

Longer Term: Typically, SBA loans offer a 10-year term compared to the conventional 5-year term.

Lower Down Payment: SBA loans often require as little as 10% down, whereas conventional loans may demand up to 50%.

No Balloon Payment: Unlike many conventional loans that require a large lump sum balloon payment at the end of the term, SBA loans are fully amortized. This means the loan is completely paid off with regular monthly payments by the end of the term.

Low Monthly Payments

Competitive rates and longer amortization: These features result in lower monthly payments compared to many conventional options. The extended amortization results in lower monthly payments, providing the business owner with increased free cash flow each month. This additional cash flow can be crucial for supporting operational needs, especially during the initial transition period of ownership.

Rules Of SBA Loans

1. The seller cannot remain in a role as an officer, director, stockholder, or key employee of the business. If necessary, a short transitional period can be arranged, not exceeding 12 months, including any extensions.

2. The SBA requires an equity injection of at least ten percent of the total project costs for such transactions. Seller debt may count towards this equity injection only if it is on full standby for the duration of the SBA loan and does not exceed half of the required equity injection.

Ready To Get Funded?

At Axelrad Capital, securing a private loan is simpler than ever! Complete our straightforward application, and our loan experts will carefully match you with the perfect program tailored to your investment goals.