Buying a business with a loan: what lenders want to see
Acquisition financing is its own game. The lender is underwriting a business that already exists — which is good news, if you know what they'll scrutinize.
When you buy an operating business, the lender has something a startup can't offer: history. The question shifts from "will this work?" to "will it keep working under you, and is the price sane?"
What they'll dig into
- The target's historical financials — real, verifiable cash flow
- The valuation — are you overpaying?
- Your ability to run it and retain what makes it work
- The transition — customers, staff, key relationships
Your part of the story
Show why you're the right operator, how you'll keep the existing cash flow intact, and that the price is supported by the numbers. A deal that services its debt on the seller's real results is a lender's comfortable place.
See where your plan stands
Paste the plan you have into the free Scanner. It scores you against the eight criteria Canadian lenders use — in about thirty seconds, no account, nothing leaves your device.
Score my plan — freeLenderReady is an educational service, not a lender, broker, or financial advisor. Lending criteria vary by institution and change over time; treat this as a starting point, not a guarantee.