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Best business loans for buying a business in 2026

The best loan for buying an existing business is an SBA 7(a) loan, because it finances goodwill that conventional lenders will not lend against, on terms of up to 10 years. Most acquisitions pair it with seller financing for part of the price. A bank term loan can be cheaper for a buyer with strong credit and a target with hard assets.

By the WithFunded team · Published November 11, 2026 · Rates as of November 2026

The 4 best options, ranked

1. 1. SBA 7(a) loan Best overall for an acquisition

   Much of a small business's price is goodwill, with no collateral behind it. The SBA guaranty is what makes a lender willing to finance that over a decade.

   Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →

2. 2. Seller financing Best alongside the main loan

   A seller who carries part of the price keeps a stake in your success and reduces the cash you need at closing. Lenders view it favorably.

   Watch for: Usually covers only part of the price, so it works alongside a loan rather than instead of one.

3. 3. Bank term loan Best for asset-heavy targets and strong buyers

   When the business comes with equipment, inventory, or property, a conventional bank loan may beat the SBA rate cap.

   Watch for: The slowest route outside SBA and the hardest to qualify for. Term loan guide →

4. 4. SBA 504 loan Best when the deal includes real estate

   If the purchase includes the building, financing the property through a 504 loan lowers the rate on the largest part of the price.

   Watch for: Only for fixed assets. It cannot fund payroll, inventory, or other working capital. SBA loan guide →

Side-by-side comparison

What it costs

SBA 7(a) rates are capped at prime plus a maximum spread that shrinks as the loan grows. At the current 7.00% prime rate, these are the highest payments a lender could charge on a 10-year term:

Payments at the SBA maximum variable rate for each size tier. Many borrowers qualify below the maximum. Source for rate caps: U.S. Small Business Administration. WithFunded calculation.

What lenders look at

• Three years of the target's tax returns and its cash flow after paying you a salary.
• Your experience in the industry or in managing a business.
• Your equity injection. Expect to contribute a portion of the price in cash.

Mistakes to avoid

• Relying on the seller's adjusted earnings without tying them to tax returns.
• Leaving no working capital after closing. Budget for the first months of operating under new ownership.

Frequently asked questions

How much down payment do I need to buy a business?

It depends on the lender and deal. SBA acquisition loans generally require an equity injection from the buyer, and a seller note can sometimes count toward part of it under SBA rules.

How long does an SBA acquisition loan take?

Weeks to a few months, covering underwriting, a business valuation, and closing. Build that time into your purchase agreement.

What would a $750,000 acquisition loan cost per month?

At the current SBA maximum rate for that size, about $9,911 a month on a 10-year term. Many borrowers qualify below the maximum.

What our clients say

Real reviews from business owners funded through Big Think Capital.

ExcellentBased on 3,304 reviews on Trustpilot

Terry Gossman, Oct 29, 2026Landon and Austin were greatLandon and Austin were great. Knowledgable and explained everything in a way that made it all really easy to understand. I avoid these call like the plague but these two were a joy to work with. Stephen Buckley, Oct 1, 2026Highly recommendedHighly recommended! I worked with Corey, and he was awesome. He found an option after I received multiple rejections that no other company had presented to me. It was within my budget and my timeline. I'm so thankful! Brian K. Robinson, Oct 14, 2026BTC has become my go to for working…BTC has become my go to for working capital. Recently, my company was in a bind and needed funds. The BTC team, headed by Drew, took a problem solving approach and helped to overcome an initial denial, resulting in a better facility than the one I was turned down for. Thanks BTC! Thanks Drew!

Showing 5-star reviews of Big Think Capital, our funding partner. TrustScore 4.9 out of 5 on Trustpilot as of November 10, 2026. Read all reviews

How we ranked these options

This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.

WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.

Related guides

The top-ranked option on this page is SBA 7(a) loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.

Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.