Business Acquisition Loan

Funding for your business acquisitions

Understanding Business Acquisition Loans


$5,000- $5,000,000


As Soon As 30 Days


Revolving or 10-25 Years


As Low as 5.5%

What can you do with a business acquisition loan?

Use a business acquisition loan to buy a business. This loan type will help you purchase an existing business or franchise, which means you can take advantage of that stellar business opportunity even if you don’t have the capital to purchase it outright.

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Benefits of a Business Acquisition Loan

A business acquisition loan can be customized to meet the needs of your company, whether you’re just getting started or expanding your existing company.

  • Flexible collateral requirements: Allows you to obtain a business loan without collateral other than the previous business’s assets.
  • Diverse financing structures available: Multiple types of business loans available for an acquisition, such as term loan or line of credit.
  • Protect your cash flow: Support growth without tying up your working capital.
  • Skip the startup stage: Own a mature business instead of building one from scratch. 

Use Startup business loan calculator to compare your loan cost.

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Minimum Requirements For A Business Acquisition Loan

If your business doesn’t match some of the qualifiers below, it may be more challenging to receive funding from our lending partners.


600 or higher




6 Months

Not qualified yet? We can help.

Lendio’s mobile app can help get your business ready for financing. Open a business bank account, get cash flow insights and stay connected to get updated when you have offers available.

Download on the App Store
Get it on Google Play
Know where your business stands with a centralized dashboard & relevant business insights.
Start separating personal & business expenses, with a no fee business checking account.
Projections for what to charge your customers, when to hire employees and upcoming expenses.

How To Apply For a Business Acquisition Loan

Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.

Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

Receive matches.

We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.

Get funded.

Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Apply Now

Why use Lendio?


funded through us


lenders in our network


loans funded

“The Lendio process was amazing”

Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Business Acquisition Loan FAQs

A business acquisition loan provides financing to small businesses looking to expand their reach by purchasing another business. There are a couple of different ways small business owners can utilize an acquisition loan. One option is to purchase an existing business outright. Maybe it’s a competitor or a related industry you want to expand in. Or maybe you’re interested in owning a business, but don’t want the hassles of navigating a start-up. Alternatively, an acquisition loan can also be used to purchase a franchise location.


Lenders review a variety of criteria when evaluating your application for a business acquisition loan. The importance placed on each factor may vary depending on the type of loan you apply for. For instance, a term loan, such as an SBA business acquisition loan, will typically require a down payment minimum. A line of credit application may place more emphasis on your revenue and cash flow.

For most small business loans, a lender will review factors like your credit history, time in business, and revenue to determine if you qualify. If you’re buying a business or franchise, your lender will look at slightly different criteria to ensure that you’re investing in a viable business, and in turn, will be able to repay the loan.

Be prepared for these specific application requirements for a business acquisition loan.

  • Credit review: Lenders look at both your business credit report and the personal credit reports of any partners with a minimum 20% ownership stake.
  • Revenue and debt: In order to make sure your business can handle the payments of your new acquisition loan, the lender reviews both your revenue and total debt payments.  
  • Minimum down payment: Some types of loans allow for a business acquisition with no money down. But others (particularly term loans) do require a down payment, usually ranging between 10% and 15% of the loan principal.
  • Business plan: Most lenders require an explanation of how you intend to use the funds to purchase a business and expand your existing operations.

Business acquisition loan amounts range from $250,000 all the way up to $5,000,000. The amount you qualify for depends on a number of factors, including your credit score, company revenue, and existing debt. Every lender will review these factors to make sure your company can safely handle your new loan payments.

Focus on types of business loans that don’t require a down payment. Both lines of credit and revenue-based loans are good starting points when exploring your options. Comparing multiple loan structures from different lenders in Lendio’s network is a smart way to find the right type of business acquisition loan for your needs.

Lendio makes the business acquisition loan process as easy as possible. The application takes just 15 minutes and you’ll get a quick response. Plus, funding arrives in your bank account within 24 hours of getting approved.

Quickly Compare Loan Offers from Multiple Lenders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST