Business Purchase: Funding

Now that you have found a prospective business to purchase, how do you fund the purchase?

There are many options and all of them need to be thought through as they will impact the success or failure of your proposed purchase, the right source of funding, the interest rate, the repayment timetable, the covenants accompanying the loans etc.

  • Savings
  • Loans from family and friends
  • Loans from banks and finance companies.
  • Credit cards – especially cards that offer 0% balance transfers and free credit periods
  • Venture Capitalists
  • Business angels
  • Joint Venture partner

Other practical steps one can take include structuring the deal so as to pay less cash upfront and extend the payment terms, perhaps even use the target business to pay some of the purchase price in months to come. Also if the target business has assets using them to leverage and obtain finance.

If you’re interested in buying or selling a business and would like to find out more, please contact Izaz Ali on

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