Generally speaking, there are two basic types of acquisition financing:
1. Interest rate
3. Application process
4. Amount of time it will take to receive funding
Choosing the Best Type of Financing
Three Acquisition Loan Options
1.SBA bank financing. This is one of the most common forms of financing for small to medium sized businesses. In most cases, lenders require collateral.
2. Seller financing. While it may not always be the best option, it is one to consider. Some buyers ask the seller to finance the entire purchase price, although
asking for partial financing is just as common.
3. Equity financing. This includes the use of individual private equity investors or private equity groups. In either case, the company is exchanging equity in their
business for cash.
1. Are you 100 percent sure that acquiring the company would be in your best interest?
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