how to buy  a business with no money


Congratulations on finding your dream business! Now it's time to figure out how to buy a business with no money or secure financing for your venture. Don't panic - I've compiled some backup plans to help you find financing for the business you will buy. When it comes to bank loans, people often associate them with paperwork, documents, and months of back and forth. However, it doesn't have to be that complicated. The ease of the process depends on the institution you choose to work with.


Securing a business loan can be advantageous as it helps build your business credit. Once you successfully repay the loan, obtaining a second loan shouldn't be as challenging. Let's consider a scenario where you found a vending machine business route for sale, priced at $100,000. You put up 50% of the amount, and the bank loans you the rest. They provide a 36-month loan with a 6% interest rate. Now, you finally own a vending machine business, and things are going well. As profits start rolling in, you manage to pay off the loan in just 16 months!


With the first venture successfully managed, you may be ready to expand and add a second business to your portfolio. When you approach the same bank for a loan, they will evaluate your improved credit score and recognize you as a returning client. As you can see, obtaining a business loan can be a valuable asset. Now, let's explore 17  ways to secure financing for your route business:


17 Ways on how to  buy a business with no money 


1. Bank Loans: Approach banks that offer business loans, provide necessary documentation, and demonstrate your business plan and potential for success.


2. Family funding: We all try not to go to the family when it comes to borrowing, but sometimes when the time has come and all doors have closed then it wouldn't hurt to open up that family album and start making calls, if you have a business that you like and the numbers are right and no red flags are triggered then you should ask for a loan from your family members, and its make some conditions to benefit them so they will be willing to help…like a contract!  


3. Silent investor:  A silent investor is someone who can take a certain percentage and stay completely out of business, that's if the returns are coming in, even tho he or she is a silent investor they still have the right to check numbers, what came in and what came out, building a good relationship with a silent investor may benefit you long term as you can grow larger knowing you have the right backing.


4. Private Business loans: As I discussed above getting a business loan for a route business can be very beneficial, if you are considering a loan term growth and owning multiple businesses then the least you can do is try to get approved, even if you don't get approved for the full amount try to get the most you and cover the rest with your own money or try to finance the rest from seller which leads us to number 2…


5. Small Business Administration (SBA) Loans: Consider applying for SBA loans, which offer favorable terms and guarantee programs for small businesses.


6. wholesale financing: Here is a good one that most people don’t consider, depending on which route business you want to buy, but let's say you decided to buy a distribution business and the previous owner was buying from the wholesaler X amount of dollars a year, you can always get the funding from the wholesaler in exchange for a guarantee that you will exclusively purchase from them for a set amount of years, this secures both your funding and the wholesaler supplying you, he will get paid back and will also keep your business. 


7. Credit cards: When the going gets tough, it's credit card time. If you have decent credit but not enough to get approved for a business loan you can always contact your credit card companies to increase your credit limit if you have 10 cards and they increase them each you will have a good amount, just don't get caught up in debt. 


8. Microloans: Explore microfinance institutions that specialize in providing small loans to entrepreneurs.


9. Crowdfunding: Utilize crowdfunding platforms to raise funds from a large number of individuals who believe in your business idea.


10. Peer-to-Peer Lending: Seek financing through online platforms that connect borrowers directly with lenders.


11. Equipment financing: This may only work if you are trying to figure out how to buy an existing business with no money or own a business with some kind of equipment, This is very common for private equity firms but here's an example lets say you own or purchased a trucking company and you have a fleet of 4 trucks you can try to get a loan off the paid off trucks, then use that loan to pay off any family debt or credit cards with high interest. 


12. Angel Investors: Pitch your business to angel investors who are willing to provide financial support in exchange for equity or a return on investment.


13. Partnership: Trying to figure out how to buy an a business with no money  can be frustrating and when you tried everything up your sleeve you can always consider getting some partners involved,  A partnership can be good and bad depending on what the structure is if you and 2 others are going in a third each then that will remove the weight of taking all that debt but it can be frustrating later on if one of the partners is the only one doing the work while the others aren't, so make sure everything is on paper for example who will do what, who will manage to finance and who will manage sales, these are all crucial steps to take in the very beginning of any business partnership.


14. Seller Financing: This is my go-to on how to buy a business with no money it worked for me once and it may work for you too! owner financing has become very popular amongst sellers of businesses, running a business can become a full-time child that needs to be cared for, watched monitored around the clock, unlike real estate, selling a home is no rushing matter but with a business when the owner wants out then every day is crucial so they offer some money down and the rest financing, but keep in mind not all sellers will offer owner financing for route business but you can always ask the agent representing the business if they are willing to do so.


15. Venture Capital: If your route business has high growth potential, venture capital firms may be interested in investing in your venture.


16. Saving up: WELL WE TRIED RIGHT? Saving up your money is the smartest way to go, try putting away a certain amount of money, if you want to buy a route business for 100K try to save up at least 75K and for the other 25K you will figure it out with one of these above


17. Finding a less expensive route: If you tried all the above and still aren't having any luck then take it down a notch and start small, finding a business that cost less and can grow, low-risk high reward… if the route business has potential and you can afford to buy then that will work out in your favor. If done correctly that can become a huge profit for you once you are ready to sell it later on.


In conclusion, we hope that one of the options listed above will help you figure out how to buy a business with no money and secure financing for your route business. We understand that the process can be stressful and challenging, but there are numerous avenues available to explore. If none of the ten options mentioned work out for you, there's always option 11: starting your own business and building it from the ground up. While it may require time and effort, if you possess the necessary skills and a strong sales drive, you can make it a success.


Finding ways to buy a business with no money is indeed a puzzle that can be solved if you approach it strategically. Financing for route businesses or any business, in general, can be overwhelming. That's precisely why we created this article, to guide you through the checklist of options step by step.


Remember, persistence and resourcefulness are key traits for any entrepreneur. Don't be discouraged if one path doesn't work out; explore alternative avenues and adapt your approach as needed. With careful planning and determination, you can find the financing you need to turn your dream of owning a route business into a reality. Best of luck on your entrepreneurial journey!


To the best of our knowledge, the information provided on this website is not intended to be taken as professional financial advice. Consult a professional financial or tax expert if you require this advice. 



Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal advice. The laws and regulations regarding business licenses may vary from state to state and are subject to change. It is important to contact your local state office to determine which licenses are required for any specific businesses. Additionally, please note that this article contains affiliate links and we may earn a commission from our affiliate partners or Amazon links. If you are considering starting a business, it is recommended that you seek the advice of a qualified lawyer, business broker, or professional in your area. The information provided in this article is not a substitute for professional advice and should not be relied upon as such.


Business finance, By: Bizroutes ON 16 Apr, 2022