Financing

Most buyers start looking for financing after the letter of intent — and lose months. On ExitToBuy, financing runs in parallel with the deal, and buyers arrive pre-qualified.

In shortMost buyers start looking for financing after the letter of intent — and lose months. On ExitToBuy, financing runs in parallel with the deal, and buyers arrive pre-qualified.

SBA 7(a), built into the deal

The SBA 7(a) loan is the workhorse of U.S. small-business acquisitions: long amortization, competitive rates, and down payments that can be far lower than conventional acquisition debt. ExitToBuy pre-qualifies buyers and matches them across a network of 40+ lenders, so the deal goes to the lenders most likely to fund it rather than a cold application.

DSCR on verified earnings

Because listings are verified, financing is modeled on adjusted SDE — not the seller’s asking story. The debt-service-coverage ratio (DSCR) is computed before the first conversation, so both buyer and lender know early whether the deal services its debt. A DSCR around 1.25× is a common lender benchmark.

For Canadian acquisitions

SBA programs are U.S.-only. For deals in Canada, financing runs through the Canada Small Business Financing Program (CSBFP) and the BDC — see financing a business acquisition in Canada.

Frequently Asked Questions

How much do I need to put down to buy a business with an SBA loan?

SBA 7(a) acquisition loans often require a lower buyer injection than conventional debt — frequently around 10%, though the exact figure depends on the deal, the lender, and whether a seller note is involved. ExitToBuy models this per listing.

What is a good DSCR to buy a business?

Lenders generally look for a debt-service-coverage ratio of at least 1.25×, meaning the business’s adjusted earnings cover its debt payments with a margin. ExitToBuy computes DSCR on verified, adjusted SDE.

Value a business like this →Finance this acquisition →Run diligence →