Attention Lenders!!! SBA Loans and Alternative Financing

September 24, 2025

by a professional from Wayne State University in Detroit Metropolitan Area, MI, USA

As a first-time business buyer on a self-funded search. What are some creative financing solutions to securing funds when purchasing a business. For example, coming up with a down-payment to fulfill loan requirements of anything between 90/10 financing and 75/25 financing. Other than bringing on an equity partner, what are other solutions? Do banks or hard money lenders typically fund the down payment/remaining funds? Has anyone had experience borrowing from the business's suppliers to secure funds while committing to the suppliers as a means of future business? Interested in what you have experienced. Thanks

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

We are a Commercial Loan Brokerage shop with over 500 funding partners. Pretty much all of the funding partners require true equity in the deal, whether that comes from the buyer or from the investor. With SBA loans you can also accomplish it with gifted money from family and friends. But just about all lenders will not let you use borrowed funds for your downpayment. If you do not have the money to put down, I would look to raise it via equity investors. There are plenty of them out there looking to back individuals with a solid business plan. If you would like to discuss further. you can reach me here or directly at redacted

Reply by a searcher
from Missouri State University in North Canton, OH, USA

It's not going to be easy as a first time buyer without an equity partner to get funding. When I started my first business, I used my 401k and took some personal loans to fund my business. Another option would be to focus on a business which is mature enough for an SBA. Good luck

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