Company |
Min. Credit Score |
Min. Time in Business |
Min. Annual Revenue |
Loan Amount |
APR. |
Biz2Credit
|
660
|
18 months
|
$250,000
|
$25,000 to $500,000
|
Not disclosed
|
Credibly
|
620
|
Not disclosed
|
Not disclosed
|
Not disclosed
|
6.99% and up
|
Lendio
|
Not disclosed
|
Not disclosed
|
Not disclosed
|
$5,000 to $5,000,000
|
5.5% and up
|
Fundbox
|
Not disclosed
|
Not disclosed
|
$50,000
|
Up to $150,000
|
Variable
|
OnDeck
|
600
|
1 Year
|
$100,000
|
$5,000 to $250,000
|
35%
|
Funding Circle
|
Not disclosed
|
3 years for SBA loans
|
Not disclosed
|
$25K-$500K for term loans, $50K- $500K for SBA loans
|
SmartBiz
|
660 for term loans, 650 for SBA loans
|
2 years for term loans, 3 years for SBA loans
|
Not disclosed
|
$30K-$500K for term loans, $30K-$5M for SBA loans
|
6.99% and up for term loans, 4.75% to 7.00% for SBA loans
|
How Do Business Acquisition Loans Work?
Business acquisition loans give you the financing you need to buy an established business. Loans can vary in amount from $5,000 to $5,000,000 or more, and they help an applicant purchase a business that they wouldn’t otherwise have the money to afford. By buying an established business, a business owner can avoid the expenses and challenges that come with the startup process, and can step into running an already functional business.
Applications for business acquisition loans generally review information about both the applicant and the business to be purchased. Applicants may need to meet requirements such as a minimum credit score rating, proof of previous experience that could help them to run the business, and proof of citizenship. Lenders may have strict requirements for the minimum number of years the business has been in operation and its annual income.
Types of Business Acquisition Loans
Multiple types of loans can function as business acquisition loans.
SBA Loans
SBA loans are backed by the U.S. Small Business Administ