Buy a business
Found a business to buy? Get the financing to close.
BizyFi doesn't list businesses for sale. We help buyers finance the one they've found: see what your cash flow and down payment can support, then get matched with SBA, bank and private lenders that do acquisitions.
Free and no obligation. No credit pull to get matched.
What can I afford?
Acquisition lenders size the loan from the business's cash flow. Enter the business's cash flow and the cash you can put in; the estimate works out the largest loan that cash flow supports at a typical lender coverage ratio, and the purchase price that loan plus your cash reaches.
An estimate from your inputs only, not a loan offer. Lenders also weigh your experience, credit, collateral and the business's history.
Ways to finance a business purchase
Most acquisitions combine two or three of these. BizyFi matches the structure to the deal.
SBA 7(a) acquisition loan
Government-guaranteed bank loans up to $5 million, with long terms that keep payments manageable.
Typically at least 10% down · terms up to 10 years (25 with real estate) SBA 7(a) vs. 504 →Seller financing
The seller carries part of the price as a note, paid over time. It shows the seller believes in the business and can bridge a valuation gap.
Usually subordinate to the bank loan How seller notes work →Conventional bank term loan
For buyers with stronger equity and collateral, or deals above the SBA limit. Faster, with more covenants.
Often 20%–30% down Check the coverage ratio →Asset-based and equipment loans
Borrow against receivables, inventory or equipment the business owns to reduce the cash you need at closing.
Sized by a borrowing base Borrowing base calculator →Over $10 million
Larger and sponsor-backed acquisitions use unitranche, mezzanine and private credit, structured one-on-one by a specialist.
Run as a competitive lender process Speak with a specialist →How buying a business with financing works
- Find the businessThrough a business broker, a marketplace or your own network. Research the industry and its competitors on the BizyFi company map.
- Know your buying powerUse the estimate above, then get pre-qualified so sellers take your offer seriously.
- Make an offer (LOI)Agree on price, structure and any seller note, subject to financing and due diligence.
- Due diligence and underwritingThe lender reviews tax returns, financial statements, a business valuation and your plan.
- CloseSign the purchase agreement and loan documents; funds go to the seller and you take over.
Buying from a retiring owner, with the skills to modernize it
Many long-running, profitable businesses are owned by founders nearing retirement, often with no family successor. Buyers who bring software, data and AI skills can lift margins in a business that still runs on paper and phone calls: scheduling, quoting, billing, inventory and marketing are common starting points.
What lenders underwrite
The business's track record: historical cash flow from tax returns and financial statements. Planned automation savings are your upside, not the basis for the loan, so make sure the price works on today's numbers.
What you bring
Industry experience matters most to lenders. A modernization plan with realistic costs and timing strengthens the request, and a transition period with the seller keeps customers and staff steady.
Keep the seller involved
A seller note and a paid transition or consulting period align the outgoing owner with your success and help transfer relationships that live in the owner's head.
Seven things to check before you buy
Adapted from the California Association of Business Brokers' seven key points, with the questions lenders will ask too.
- What exactly is for saleWhich assets, real estate, equipment and contracts are included, and which are not.
- Proprietary assetsSoftware, data, formulas, patents, licenses and the customer list: often the core of the value.
- Assets that earn their keepEquipment or locations that cost more than they return; a lender's collateral review looks at the same thing.
- Competitive advantageWhy customers choose this business, and how durable that is once the owner leaves.
- Room to growIncluding the operational upgrades (systems, automation, AI) the current owner never made.
- Working capitalThe cash needed to run the business after closing; budget for it alongside the purchase loan.
- Management depthHow much depends on the owner personally, and who stays through the transition.
Resources
Guide: buying from a retiring owner
How the financing works, what lenders underwrite, and where a modernization plan fits.
Read the guide →SBA: manage your business
The SBA's guide to finances, taxes, compliance, AI for small business, cybersecurity and transferring ownership.
sba.gov →Free business counseling
SBA resource partners (SCORE mentors and Small Business Development Centers) advise buyers at no cost.
Find a counselor →Common questions
Does BizyFi list businesses for sale?
No. BizyFi is a financing platform. Find the business through a broker or marketplace, then use BizyFi to estimate your buying power and get matched with acquisition lenders. The companies in the BizyFi directory are not for sale listings.
How much do I need to put down?
SBA 7(a) acquisition loans typically require an equity injection of at least 10% of the project cost. Conventional bank loans usually ask for more, often 20% to 30%. Part of the down payment can sometimes come from a seller note, subject to the lender's and the SBA's rules.
How do lenders decide how much I can borrow?
Mostly from the business's cash flow. Lenders compare the cash flow available for debt service with the annual loan payments (the debt service coverage ratio, or DSCR) and commonly look for at least 1.25x. Your experience in the industry, your credit and the collateral matter too.
What if the price is more than the cash flow supports?
Negotiate the price, ask the seller to carry a larger note, add equity, or use asset-based financing against receivables, inventory or equipment. Value the business to see whether the asking price is in a financeable range.
Ready to finance your acquisition?
Tell us about the business you're buying. A Fusion Network advisor reviews every request before anything goes to a lender.