There is no single best loan for buying an existing business. The right structure depends on whether real estate is included, how much equity you have, and how quickly you need to close.
This is a side-by-side comparison of the loan types buyers actually use for acquisitions.
SBA 7(a) and 504
SBA 7(a) is the workhorse for business acquisitions: up to a statutory maximum, long amortization, and lower injection requirements, at the cost of guarantee fees, personal guarantees, and longer processing. 504 pairs a bank loan with a CDC debenture for owner-occupied real estate and heavy equipment, offering long fixed-rate financing on the real estate piece.
Both require full documentation and eligibility review, and both typically require the business to demonstrate coverage from historical cash flow rather than projections.
Conventional Bank and Commercial Real Estate Loans
Conventional acquisition loans close faster and cost less in fees, but require stronger borrowers, larger injections, and often shorter terms with balloon maturities. Commercial mortgages price against the property, with amortization tied to asset life and value supported by appraisal.
If the deal includes valuable real estate, splitting financing between a mortgage on the property and a shorter facility on the business often produces the lowest blended cost.
Seller Notes, Earnouts, and Equity
Seller financing fills equity gaps, aligns the seller with a smooth transition, and can be structured on standby behind a bank. Earnouts tie part of the price to performance and are useful when the parties disagree about sustainability of earnings.
Outside equity partners cost ownership rather than interest, and are typically used when the buyer's capital is the binding constraint rather than the lender's appetite.
Equipment, Lines, and Alternative Lenders
Equipment finance covers dispensers, coolers, POS, and vehicles at terms matched to asset life. A working capital line funds inventory and payroll after close — do not use acquisition proceeds for operating cash.
Non-bank and merchant advance products close fast and cost far more; treat them as bridge tools, not acquisition financing. For Florida fuel-retail deals, call The Gas Station Group at (305) 518-1545. All transactions are brokered through Fausto Commercial.
Frequently Asked Questions
Speak With a Florida Gas Station Specialist
Request a confidential consultation or off-market opportunities and pricing through our contact page, or call +1-305-518-1545. The Gas Station Group is headquartered at 8603 S Dixie Hwy, Miami, FL 33143. Principal: Bobby Berrido.