Assess your willingness to spend and understand your available business financing options, including your future credit impacts
Prepare to present your personal and business credit history, income documentation, and cash flow statement to lenders
Research the business thoroughly, including legal records, financials, tax records, and operations to avoid surprises after purchase
Locate and evaluate businesses for sale, considering their financials, market position, and operations
Obtain a valuation of the business to understand its worth, taking into account revenue, assets, and existing debts
Explore different loan options like SBA loans, term loans, equipment financing, and lines of credit, and understand their terms
Develop a comprehensive business plan detailing the current state of the business, transition plans, and areas for improvement
Collect all required personal and business documents, including identification, tax returns, and financial statements
Compare different lenders and loan types, focusing on terms, interest rates, and borrower requirements
Submit your loan application, ideally starting with banks or credit unions where you have an existing relationship, or using tools like the SBA’s Lender Match