Typically businesses are purchased with a down payment and the balance funded as a loan from the seller, a financial institution or a combination thereof. About 10% of purchases are for all cash which usually commands a discount. Down payment levels vary based on the type of loan sought by the purchaser. When owner financing is involved typical down payments are in the 25% to 50% range. Institutional SBA lenders may be willing to lend with as little as 10% down depending on the type of business assets being purchased. Interest rates and years to amortize vary greatly depending on who is lending the money, the qualifications of the purchaser and the cash flow generated by the business. SBA loan down payments requirements may be as high as 20 to 25% depending on the business and especially if there is no real estate in the deal. Sometimes the seller may be willing to hold a small note for 5-10% of the sales price which lowers the purchaser’s down payment requirement by that amount.