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How Much Deposit Do You Need For A Business Loan?
January 26, 2023 jun Strategy Session


If you’re thinking about buying a business, one of the first conversations you should have is with a finance broker who can help you assess your financial situation.


When you’re looking at how much you need to purchase a business, there is no one set rule. Different types of businesses hold different assets and produce different levels of cash flow, while some others will also include a land component.


According to some experts, a general rule would be that you need to come up with anywhere from 10-30% of the business’s value to obtain finance from a lender. However, many banks and lenders will assess finance based on the assets of the business. There are a range of different options to help finance the purchase and operation of a SME including invoice financing, equipment financing or lines of credit. It’s also important to factor in how much working capital you will need when taking over a business to handle things like payroll.


The best starting point is to sit down with a finance broker who can compare your options and help you focus on achieving your goals when you purchase a business.




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