Buying A Business

The process by which an existing business is acquired.

It’s unlikely that you will have the means to buy a business simply with the cash in your hand – you will almost certainly need to borrow. An acquisition loan is money borrowed specifically to purchase a company or asset.

What are your options for funding a business purchase?

Traditional bank finance remains the obvious first port of call, but many alternative funding streams for purchasing a business are available, including private investors, venture capital funds and crowdfunding. The latter involves individuals or groups pooling money to finance other individuals, groups or businesses.

Practical Application Example

“ Examples depend on the exact type of finance chosen for funding a business acquisition. Crowdfunding, for instance, is typically done via a central platform, with multiple funders contributing small amounts towards a goal figure. ”