Business Acquisition Loan With No Money Down
A business acquisition loan with no money down is rarely a single loan. It is a financing stack where seller financing, earn-outs, and debt secured on the target's own assets replace the buyer's cash. SBA 7(a) loans still require at least 10% equity for an acquisition, so true zero-down deals are usually structured outside the SBA program.
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How Buyers Close With Little or No Cash
Seller Note
The seller finances part of the price. Under SBA rules, a seller note on full standby for the life of the loan can cover up to half of the 10% injection ( SOP 50 10 8.1).
Earn-Out
Part of the price is paid later from the business's own profits, which cuts what you fund at closing.
Asset-Based Debt
Receivables, inventory, equipment, and property in the target secure a senior loan sized to their value.
Equity Partner
An investor provides the cash equity in return for a share, while you run the business.
What We Deliver
FG Capital Advisors values the target's assets and cash flow, designs the financing stack, negotiates seller terms, builds the lender credit package, and places the senior and junior debt with suitable lenders. See our acquisition financing services.
Who It Is For
Experienced operators and search fund buyers acquiring profitable businesses with steady cash flow and real assets, where the seller is open to deferred payment. It also suits management buyouts, where the team knows the business and the owner wants a gradual exit. For more options, read 7 ways to buy a small business with no money down.
FAQ
Can I buy a business with no money down through the SBA?
Not fully. A standby seller note can cover half of the 10% injection, so you still need about 5% from your own cash or other allowed sources.
What makes a no money down deal work?
Strong historical cash flow, assets a lender can value, and a seller willing to carry part of the price.
How much debt can the business support?
Lenders look at historical cash flow. SBA lenders now want debt service coverage of at least 1.25x on acquisitions, so the business must earn a quarter more than its total loan payments.
Structure Your Acquisition
Send us the target's financials and the asking price, and we'll reply with a financing structure and our fee.
Request an EstimateGeneral information only. Lenders make their own credit decisions, and SBA rules change, so confirm current requirements with your lender.
