It makes financial sense to get an acquisition loan if the loan amount is greater than $100,000. If the amount is less than $100,000, you should consider a personal loan for the business purchase.

There are several fees, such as origination and document, associated with business and commercial loans that make personal loans a more affordable option for loans under $100,000.

While there is no universal answer, the business should be open for three years or more. You will also need to provide some additional information about the company you want to acquire, including, but not limited to, records of the business's financial performance, a business plan, and financial projections.

A solid credit history is crucial for any business loan, and your personal credit score will carry a great deal of weight during the decision process. Individuals interested in commercial or business loans should not have unsatisfied judgments, tax liens, or bankruptcy on their credit reports in the past three years.

A Working Capital Loan is a loan to help business owners cover immediate, everyday business operations and expenses during a slow season. While Working Capital Loans help you bridge gaps between accounts receivable and your immediate expenses, these loans should not be used for long-term funding.

Working Capital = Current Assets – Current Liabilities

Current assets include items like cash, inventory, accounts receivable, and any pre-paid liabilities.

Current liabilities include items like accounts payable, income tax owed, and immediate debts.

A solid credit history is crucial for any business loan, and your personal credit score will carry a great deal of weight during the decision process. Individuals interested in commercial or business loans should not have unsatisfied judgments, tax liens, or bankruptcy on their credit reports in the past three years.