An acquisition loan is a loan given to a company to purchase a specific asset, acquire another business, or for other reasons laid out before the loan is granted. Typically, a company can only use an acquisition loan for a short window and only for the agreed-upon purpose.
Buying a business can be incredibly rewarding and lucrative, but obtaining business acquisition financing can only be accessed with an established business or a track record of success in a similar industry. Fortunately, there are alternatives to traditional business loans that can help entrepreneurs take the next step toward business ownership and growth.
Loans for business acquisition are available from various sources, each with flexible payment terms and rates. It is often easier to get a loan to buy a business if you already own an existing business in a similar industry. However, there are also small business acquisition loans available for startups.
Loans to acquire a small business vary in amounts, terms and interest rates, and each of these variables will impact the other. A conventional term loan from a bank for business acquisition is one of the most popular ways to acquire a business. Substantial assets, good personal credit and demonstrated success in business are among the requirements for getting a traditional small business loan.
Refer to this video to learn more about our lending practice around Business Acquisition Transactions:
Avon River Ventures’ M&A Team provides end-to-end valuation, buyer targeting, outreach, negotiation, and deal-closing support. Mergers and Acquisitions (M&A) are one of the most complex business events that involve consolidating companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, purchasing assets, and management acquisition. Our M&A services are as follows: