How to finance a business acquisition?
The most common way to finance a business acquisition is an SBA 7(a) loan, up to $5 million with typically 10% down, often combined with a seller note for part of the price. Term loans and equipment financing can cover smaller deals or specific assets. Few buyers have the full purchase price in cash, and the right structure is usually the difference between a deal that closes and one that dies in diligence. Quordx Capital matches acquisition buyers with SBA-approved lenders and conventional lenders from a 50+ lender network: through one free application.
Last updated · Reviewed by Cody Dreis
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How acquisition financing actually gets structured
Most acquisitions under $5 million run through the SBA 7(a) program. Here's the typical stack: roughly 10% buyer down payment, 70-80% SBA loan, and the remainder as a seller note (the seller finances part of the price and you pay them over time). Lenders underwrite the target business's cash flow: they want its historical earnings to cover the new debt payments with room to spare. Expect to provide 2-3 years of the target's tax returns and financials, your personal financial statement, and a purchase agreement. Current 7(a) variable rates run roughly 10.5%-14% depending on loan size (Prime is 7.50% as of June 2026). SBA acquisition deals usually take 30-90 days to close, so start the financing conversation before you sign a letter of intent if you can.
Funding options for buying a business
SBA 7(a) loan: Up to $5M, long repayment terms, typically 10% down for acquisitions. Best for buyers with decent credit (most 7(a) lenders look for 650+) purchasing a profitable, established business.
Business term loan: $10K-$500K+ over 1-5 years with fixed payments. Best for smaller acquisitions or buying out a partner when SBA timelines don't fit.
Equipment financing: $5K-$5M+ secured by the equipment itself. Best when a large share of the purchase price is machinery, vehicles, or fixtures: you can finance those assets separately and shrink the loan you need elsewhere.
How Quordx Capital Works
You complete one application, about 5 minutes, and upload your documents digitally. Quordx Capital's matching process then analyzes your profile and the deal, identifying 3-7 best-fit lenders from a network of 50+ ranked by approval probability, including SBA-approved lenders who actually do acquisition deals. Most lender decisions come back within 24-48 hours; non-SBA products can fund in 3-7 business days, while SBA acquisitions follow the SBA's longer timeline.
What to Expect
Acquisition lending is document-heavy: that's the honest trade for getting 80-90% of a purchase price financed at SBA rates. The biggest objection we hear is the down payment: 10% of a $1M deal is still $100K. A seller note can sometimes reduce what you bring to closing, and your matched lenders will tell you exactly what structures they'll accept. Quordx Capital is free to you, no broker fees, no application fees, and if the deal isn't financeable as structured, we'll say so before you waste months on it.
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Written by
Cody Dreis
Founder, Quordx Capital
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