Capital to Buy, Build, and Grow Businesses

Business acquisition financing through SBA, conventional, and private capital, structured to get the deal done with the least cash out of your pocket.

Financing a Business Purchase or Partner Buyout

Buying an existing business is the fastest path to meaningful cash flow. The challenge is structuring the deal so it works for you, the seller, and the lender. CapitalAx structures acquisition financing through SBA 7(a), conventional lenders, and private capital sources depending on deal size and borrower profile. We recently closed a $1.3M SBA acquisition with just 5% buyer equity injection using a standby seller note, that kind of creative structuring is what separates a deal that closes from one that dies on the vine.

Key Terms

Loan Range: $250K to $10M+
Terms: 7 to 25 years
Down Payment: 10% to 20% typical
Programs: SBA 7(a), conventional
Coverage: Purchase + working capital
Timeline: 45 to 90 days

Who Is It For

  • First-time business buyers
  • Serial entrepreneurs adding to a portfolio
  • Existing operators acquiring competitors
  • Management teams executing buyouts
  • Franchise buyers with strong operator profiles

Common Use Cases

  • Complete business acquisition
  • Partner or shareholder buyout
  • Franchise purchase
  • Management buyout (MBO)
  • Strategic competitor acquisition

Borrower Scenarios

  • A corporate executive leaving their Fortune 500 job to acquire a $1.3M plumbing company with 15 years of steady revenue, structuring the deal with SBA 7(a) at 10% down and a seller training period built into the transition.
  • Two partners buying out a third partner's 33% stake in a profitable auto body chain with 4 locations, using conventional acquisition financing to fund the $900K buyout without disrupting operations.
  • A serial entrepreneur acquiring a competing IT managed services firm to consolidate market share, packaging the $2.1M acquisition with working capital reserves through a combined SBA and conventional structure.
  • A franchise operator purchasing the assets and customer contracts of a failing competitor location at a discount, using a streamlined SBA 7(a) asset purchase structure that closed in 52 days.

Why CapitalAx

Deal Structuring That Bridges Buyer-Seller Gaps: Most acquisition deals fall apart over price disagreements or financing structure, not the business itself. We structure seller notes, earnouts, and equity injection strategies that align buyer and seller interests while meeting lender requirements.
Valuation and Cash Flow Underwriting Support: We help buyers build the financial case lenders need, recasting owner compensation, normalizing one-time expenses, and presenting the business's true earning power in a format that maximizes the loan amount approved.
First-Time Buyer Guidance Through the Full Process: Buying a business for the first time involves LOIs, due diligence, legal entity formation, and lender requirements that most first-timers have never navigated. We quarterback the financing process from LOI to closing.

Frequently Asked Questions

Can I finance 100% of a business purchase?

Full financing is rare, but SBA programs allow as little as 10% down in many cases. Seller financing can also be layered in to reduce the equity injection required from the buyer.