 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: Additional Ways to Finance Buying a Business\n--------------------------------------------\nGetting a loan to fund a business purchase isn't your only option. If you can't find a willing lender or your approved loan amount doesn't cover the cost of the business, consider these alternative funding ideas:\n**Negotiate seller financing.** Although some sellers are looking to cash out and never look back, some may be open to being paid over time. You can negotiate this type of financing into your sales agreement and skip the bank altogether.\n**Borrow from friends and family.** This is not an option to be taken lightly: The emotional cost of defaulting on your loved ones is astronomical. But if you're confident in your ability to repay and are willing to write up an ironclad loan agreement, this can be a viable funding source.\n**Seek out investors or partners.** You can share the investment—and the equity in your business. Just be aware that doing so will affect how you operate your business, who's in control and how profits are distributed.\n**Use your personal funds.** In addition to your regular savings, you can consider using investments and other sources of cash to help pay for your new business. Just be wary of tax consequences and the risk of depleting your emergency fund or nest egg: Even the best business opportunity represents some risk. You can also take your reserves of personal credit into account, although financing large sums of money at high credit card interest rates isn't an ideal way to fund your business as it can easily cause your credit utilization to shoot up, which could have big credit implications.\nIf you're hoping to purchase a business with a minimal upfront investment—sometimes described as a leveraged buyout—you might try a combination of these options. For example, you might use personal funds to make a 10% down payment, secure an SBA loan for 50% of the purchase price and ask the seller to finance the remaining 40%. A leveraged buyout can help you get into a business you don't have the funds or borrowing power to buy outright. But the high debt load can also increase your risk, so proceed with caution. END