Best business acquisition loans

Small Business Administration (SBA) loans are loans given through SBA lenders, and each loan is approved by the SBA. The SBA guarantees part of the loan in case the business owner defaults. This SBA guarantee makes these loans easier to get than conventional loans, provided that you meet the requirements.

SBA loans are known for offering high loan amounts of up to $5 million for the popular 7(a) loan. You also get long repayment terms of up to 10 years for working capital or 25 years for real estate loans.

So, if you need a large amount to acquire your new business, SBA loans have the ability to grant you the capital you need. You will have to meet the lender’s requirements to gain capital into the millions of dollars.

To get an SBA loan, you will need to:

1. Look for lenders that offer SBA loans.
2. Compare each lender’s minimum requirements.
3. Apply for an SBA loan through one or more lenders.
4. Communicate with the lender about the documents you need to turn in with the application.
5. Wait for approval by both the lender and the SBA. The processing time can take 30 to 90 days.
6. If approved, receive your funds deposited to your account.

Lendio is a loan marketplace with over 75 lenders housed inside its digital walls. Through its partners, it offers term business loans with an array of top-notch features: high loan amounts, reasonable starting interest rates and long repayment terms.

On top of those features, startup businesses with at least one year in business can qualify for Lendio’s loans. You need just $8,000 in monthly revenue and a 600 personal credit score to qualify. Many lenders, like traditional banks, require more to get started with their business loans, such as $200,000 or more per year in revenue and two years in business.

To get a Lendio business loan, you need to:

1. Fill out Lendio’s application online.
2. Get matched with one or more lenders.
3. View and compare loan offers.
4. Choose the loan that best suits your business, and that has the most favorable terms.
5. Finalize your information.
6. Wait for final approval and receive your loan. Lendio’s partners can fund business loans in as little as 24 hours.

Taycor Financial offers up to $2 million for equipment financing with the ability to approve financing within hours of your application. It offers equipment financing and leasing, letting you pick the financing option that suits you.

Taycor offers a simple one-page application online, which can prequalify you for up to $400,000. If you need a larger amount, you’ll need to contact Taycor directly.

The fintech lender is a Bankrate Awards finalist offering the best small business loans for newer businesses. While it doesn’t state its equipment financing requirements online, Taycor Financial typically requires a low 550 personal credit score and $96,000 in annual revenue to qualify. Those minimal qualifications are a rare find, even among online lenders.

Taycor Financial simplifies the application process, offering a short, one-page application that doesn’t require you to submit tax returns and can provide up to $400,000. It performs a soft credit check to see if you qualify, which ensures that you won’t take a hit on your credit score. For larger financing amounts, you’ll want to contact Taycor directly.

Bank of America’s secured business loan offers some of the lowest interest rates you’ll find on the market. Interest rates start as low as 6.75 percent as long as you qualify with strong finances. Its secured loan comes with a four-year repayment term if you secure it with business assets or five years if secured with a CD.

The bank also doesn’t advertise a maximum loan amount. Lending giants like Bank of America tend to be able to manage large loans into millions of dollars, helping you fully cover the amount for your business acquisition.

To get a Bank of America business acquisition loan, you’ll need to set up a meeting with a financial advisor in person or over the phone. You can schedule phone meetings from the Bank of America website.

To qualify for a secured business loan, you need:

• 2 years in business with the current owner
• $250,000 or more in annual revenue

SMB Compass offers a suite of loan options that you can use as your small business acquisition loan. Those include term loans and business lines of credit. But you can also tap into alternative types of loans, such as invoice financing and asset-based loans. Its loans offer high loan amounts of up to $5 million or $10 million.

SMB Compass works best for established businesses with fairly high personal credit scores and strong revenue. For example, its term loan requires a 680 personal credit score and $500,000 in annual revenue. Its SBA loans require three years in business, a 650 personal credit score and $500,000 in annual revenue.

You’ll want to run through SMB Compass’s minimum requirements before applying for the loan. Each loan sets different requirements, so you may qualify for some loans and not others. You can start your application process online, and SMB Compass funds most loans within one to seven business days.

Funding Circle term loans help you get a repayment term that works with your schedule. Its term loan can offer financing for as little as six months and up to seven years. In the online lending landscape, many online lenders stop short with two-year repayment terms for term loans.

Funding Circle also offers flexibility by allowing you to make monthly or biweekly payments. And you won’t get tagged with a penalty if you pay the loan off early. That feature is important since repayment penalties for a business acquisition loan could get high if it’s calculated as a percentage of the loan.

You also get competitive interest rates starting at 7.49 percent, which sticks close to interest rates that you’d find at traditional banks.

Funding Circle keeps its requirements for business loans loose in terms of credit score and annual revenue. To qualify, you need:

• 660 personal credit score
• $50,000 in annual revenue
• 2 years in business