Finance to Buy a Business

Choosing an existing business for sale is the easy part; by the time you’re considering buying a business, you already have an idea of which industry it will be in, its size, type, and all of the other particulars. The more complicated part is when it comes to applying for finance to buy a business. Very few people have the capital to use cash to buy the business, so it’s important to understand the ways and means of borrowing money and still making those dreams come true!

Bronwen Barnard

05 September 2025

Summary

Opting for Finance to Buy a Business

The good news about applying for a loan to buy an established business is that financial institutions and lenders will feel more comfortable approving it. Investing in a start-up may prove to be a lot trickier. This is because established businesses have solid financial records, a proven track record of performance, and various assets.

Bank-Financed Business Loan

Banks are generally the first option that anyone looking to apply for a loan turn to. Unsurprisingly, banks are quite strict when it comes to the application process, and you will need to compile a lot of information in order to get the go-ahead from the bank you’re dealing with.

Top Tip: Consider lending on your mortgage loan; this tends to be an easy process.

Accounts of the Business

A bank will need to see the accounts of the business that you intend to buy, and you’ll need to supply at least three years’ worth to provide a clear picture of the health of the business. These will show whether the business is a viable purchase or if the bank is taking a risk by lending you the money.

Business Plan

A bank will need to see what the business does, how it fits into the market, what your plans are to reach that market, and how you plan to ensure the business’ success. Make sure that this paperwork makes sense and is credible.

Realistic Revenue Projections

At the end of the day, a bank needs to know that the money they are lending you is going to yield successful results for them. Your business plan should mention different scenarios and how you plan to make a success from them. This includes calculated and estimated costs vs profits.

An Accurate Business Valuation

You will need to provide evidence of the value of the business you are buying.

Searching for a business that not only meets all your requirements with regards to income, location, industry but also falls within your budget can be difficult. Our website assists buyers and sellers of businesses within multiple industries. Contact us for advice and more information!

Author: Bronwen Barnard

More Buyers Knowledge Bank

Get the latest information, valuable tips and share in the professional knowledge of business experts on buying a business

Inika Pieters

A Practical Guide to Business Due Diligence for Buyers in South Africa

Buying a business can fast-track your journey to business ownership—but only if you know exactly what you're buying. Before signing on the dotted line, it's essential to conduct thorough due diligence to uncover potential risks, verify financial performance, assess legal compliance, and ensure the asking price reflects the business's true value. In this guide, we cover the 10 essential due diligence checks every business buyer should complete to make informed decisions, minimise risk, and invest with confidence. Whether you're purchasing a retail store, franchise, manufacturing business, or service company, this checklist will help you evaluate any opportunity before you commit.

Inika Pieters

What to Do After Buying a Business in South Africa: Your First 90 Days

Buying a business is only the beginning of your entrepreneurial journey. The first 90 days are crucial for understanding operations, building relationships with employees and customers, managing cash flow, and setting the foundation for long-term success. Learn the key steps every new business owner in South Africa should take after acquiring a business.

Inika Pieters

Business Trends in South Africa for 2026: Opportunities for Entrepreneurs and Investors

Discover the key business trends shaping South Africa in 2026 and uncover opportunities for entrepreneurs, investors, and business buyers. From artificial intelligence and online businesses to renewable energy, franchises, and recurring revenue models, explore the industries expected to drive growth and create new investment opportunities.

Bronwen Barnard

Franchisor and Franchisee Relationship: A Breakdown

The relationship between a franchisor and a franchisee is probably one of the most important aspects of succeeding with a franchise business. One can have a fantastic business plan and concept, but if the relationship is not strong and both parties do not invest time and effort into the relationship, it is more likely that the franchise will not be successful.

Bronwen Barnard

E-commerce Business for Sale: The Benefits

Whether you’re looking into buying an e-commerce business for sale because you’re passionate about building up a brand or whether you’re in it for the money, it’s still a good investment. Buying an online e-commerce business is a shortcut to entrepreneurial success compared to building your own business from the ground up. This article will discuss why buying an e-commerce business is better than building one and how much an e-commerce business will cost potential buyers.

Bronwen Barnard

Buying a Manufacturing Business for Sale

There are several good reasons why a manufacturer or an entrepreneur might be considering buying another manufacturing business. Acquiring a manufacturer can help you secure your supply chain or even allow you to bring product manufacturing in-house. As part of a diversification plan to develop into new markets, you can acquire a manufacturing company with a complementary or competing product to assist you in securing your customer base.

Bronwen Barnard

What to Consider Before Buying a Franchise

Buying a franchise can either be the best financial investment you ever make or the worst. Therefore, it’s crucial to do your research and have the facts before investing. In theory, a franchise is a perfect way for up-and-coming entrepreneurs to have a successful business, without having to build one from scratch. Successful franchises usually already have a business model that works and a loyal customer base.

Bronwen Barnard

What Factors to Consider Before Starting a Franchise?

Starting a franchise is the answer to being a business owner without having to start from scratch. To begin your business, you simply follow the franchise business model and utilise the already existing brand equity. Doesn't it sound brilliant?

Bronwen Barnard

Car Wash for Sale

Have you been on the lookout for car washes on sale in South Africa? Look no further because Business for Sale has got you covered. With a full listing of business opportunities, business broking tools, valuations, knowledge sharing, and services, Business for Sale is the portal of choice for entrepreneurs.

Bronwen Barnard

Franchises Under R500 000 in South Africa

Franchising isn’t always the cheapest way to start a business, but luckily there is a growing number of franchising options in South Africa that don’t break the bank. Franchising is easily one of the safest ways to start a business as you already start with a reputable brand name and access to loyal customers.

Bronwen Barnard

"Cheap" Franchises in South Africa

Finding affordable franchises in South Africa can be very easy, thanks to Business for Sale. We already know what the benefits of owning a franchise are, and so naturally, the next best step is to find a franchise that suits your budget. Cheap food franchises in South Africa can be a little tougher to come across, as food franchises tend to be pricier. However, there are other franchises that can be bought into! Most Affordable Franchises in South Africa There are different categories that make for brilliant, affordable franchise options.

Bronwen Barnard

Supermarket for Sale

Independent grocery stores may find it a challenge to make a profit. Grocery stores make their profit based on volumes of customers. The Covid-19 pandemic put some pressure on supermarkets when everyone panicked about necessities like toilet paper. Supermarkets had to keep up with the demand, but also struggled under the regulations that prevented the sale of other regular items. Luckily, South Africa’s strictest lockdown levels have abated, giving most South African businesses the opportunity to pick up from where they left off.