Source of Funds (Acquiror)

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July 20, 2025

by a searcher from The University of Michigan - Stephen M. Ross School of Business in New York, NY, USA

I'm looking to understand how the composition of the Source of Funds impacts how attractive you are as a buyer and how you're perceived by the seller. For example, if I planned to fund 90% of the purchase price with an SBA loan, would that change how I'm viewed in a process?
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Reply by a searcher
from The University of Michigan in Snohomish, WA, USA
I wouldn’t share the breakdown unless the seller asks, just say you are buying the business with your own funds + an SBA loan. 10% down is pretty common so even if they do ask it shouldn’t be a huge surprise. If they truly know the breakdown of funds for all potential buyers then others with more equity could look stronger but there are multiple other factors to consider so I wouldn’t sweat it.
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Reply by a professional
in New York, NY, USA
Ask ^redacted‌
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