By Times Team

Copyright times

Daren Leng, Senior Business Broker at ABC Business Sales, explains the different funding options available for people buying a business.

Buying a business is a major investment, and most buyers don’t arrive with a suitcase full of cash.

They rely on a mix of funding options and for sellers, the more attractive your business is to lenders, the smoother your sale will be. Here are four common approaches I see as a broker:

Bank loans and asset finance: The most common route. Banks offer competitive rates and long terms. Asset finance suits businesses with plant and equipment, vehicles, etc.

Private investors or partners: Shares the burden/risk, but often adds complexity and can reduce your slice of the cake.

Home equity or personal loans: Often quick with good rates, over longer periods, but carries personal risk.

Seller financing: Some sellers agree to finance part of the purchase. It can help close a sale, but is usually only considered by business owners, as a last resort.

Each option has pros and cons. Buyers don’t always know what’s realistic, and sellers don’t want delays while finance falls apart.

That’s where a good broker adds value. I screen for genuine buyers, raise finance discussions early, and connect clients with trusted financial advisors to turn intent into a successful sale.

Sell your legacy with confidence. Contact Daren Leng, Senior Business Broker, ABC Business Sales. Ph 021 0278 6045 or email darenl@abcbusiness.co.nz.