A financing conversation before the closing clock starts.
A signed agreement often brings a deadline. Talking through the proposed purchase early can help surface issues with the financing structure before the buyer and seller become committed to terms that need to change.
Bring a high-level description of the business, the proposed price, what is included in the sale, your background, and your available investment. You don’t need to have every answer to start.
Look beyond the seller’s asking price.
- Cash flow after the sale. Historical earnings are important, but so are the expenses and responsibilities that change with ownership.
- A realistic transition. Consider the seller’s ongoing role, staff continuity, licenses, and important customer relationships.
- Working capital at closing. The business still needs cash to operate after the purchase is complete.
- The buyer’s contribution. Identify the source of available funds and the cash remaining after closing.
- Property and leases. A business purchase may also involve a lease assignment, real estate, or necessary improvements.
How SBA 7(a) may help
The 7(a) program permits eligible complete or partial changes of ownership. Every request still needs to satisfy program rules and lender underwriting, including the proposed ownership structure and the ability to repay.
I can help you identify the information needed to evaluate the proposed structure and move the discussion toward a formal review.
Acquisition questions
Can a seller stay involved after closing?
That depends on the proposed transaction and the applicable rules. Describe the seller’s retained ownership, employment or consulting role, and any seller financing so the complete arrangement can be reviewed.
Can a seller note replace my down payment?
Do not assume that it can. Treatment of seller financing depends on applicable SBA requirements and the lender’s structure. Any proposed seller note needs to be reviewed before purchase terms are finalized.
Should I send the business tax returns through this website?
No. Use the inquiry form for a brief overview only. A suitable method for sharing financial documents can be arranged after we connect.
Reviewed September 5, 2026. General program information; individual financing requires review.