Building up a business from scratch and become their own boss is what most people wish but what keeps them from taking this decision is the statistics that are released now and again by research houses. Their data mostly shows that more than half of the start-ups fail during their initial years of doing business.

This prevents a lot of people from taking that leap of faith. To overcome this situation what can be done is to buy an already established business. This would also solve the financing problem as a business that has a track record of operations and growth are most likely to benefit from various sources of funding from different lenders.

If you too are someone who is considering buying an established business, then do give a chance to any of these funding options mentioned below.

A bank loan

If you are able to show strong financials and a promising future outlook of the business you plan on to purchase then a bank would be more than willing to offer you a loan and that too on the lower interest rate. This is because the bank, after its assessment of the potential of the business, believes that it has the repayment capacity and that it would be a categorized in its low-risk category.

A few other important things that are required to avail this option are a good credit score, deposit as collateral in the bank, and some past industry experience of the business that you are buying.

Credit union loans

As the name indicates, credit unions are unions that are managed by its members. These are non-profit financial institutions who mostly offer lower interest rates as compared to the banks. They even have flexible lending requirements as they follow a more personal approach when it comes to underwriting.

One thing you need to take care of is if you are a member then certain eligibility requirements would be applicable to you.

Online business loans

Recent advancement in the field of finance because of the upgrade in technology is the availability of online business loans. These lenders follow a streamlined application process and even their approval rates for the loan are higher than the banks.

Online personal loans

This funding option is mostly availed by borrowers who want to finance their new ventures, but it also easily accessible to those who want to fund the purchase of a business. Low-interest rates are also available in the type of funding option and the chances for getting approved are high.

Seller financing

If you are facing trouble to fund your purchase then what you can do is strike a deal with your seller. What happens is that the seller sweetens the deal and offers the buyer to pay for the deal in installments. This also helps the seller in their tax situation where they don’t have to pay a huge amount in tax after receiving a big cash inflow.