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How to Buy a Business With No Money: Expert Tricks

If you know how to buy a business with no, you can easily kick start your entrepreneurial test

Do you know you can acquire a business without money? Of course, it’s possible if you are strategic about it. Don’t worry, in this article; I will teach you how to buy a business with no money. 

Before I proceed, let me ask you a quick question? What do you think makes an entrepreneur outstanding? It’s his ability to recognize opportunities as they present themselves. 

Like most other things in life, opportunity always favors bold people. This is a lesson I learned after reading the success stories of some of the world’s most successful businessmen. 

So, if someone offers you a rare opportunity to buy a business and you don’t have money, just say yes. You can always source for funds later. That’s how a real entrepreneur thinks. 

Unlike most people, money is the last thing you should think of when buying a business. Of course, money is essential, but it’s just a variable in the business buying equation.

However, before you understand how to buy a business with no money, you need to learn about the business acquisition process. Trust me; if you have little or no knowledge about the process, nobody will take you seriously. Not even the business broker. 

So, it’s advisable to learn more about the business you want to buy. And understand how the industry works. With this level, you can show the business owner (seller), brokers, and potential investors that you prepared. 

What Does It Mean to Buy a Business?

Buying a business is one of the options available for aspiring entrepreneurs to kick start their entrepreneurial journey. It’s easier to manage and expand an existing business than to start from scratch. Buying a business is the process of purchasing an existing business that’s up for sale. 

There are several advantages to buying an existing business. It helps the entrepreneur to reduce the cost of training new staff. They can always retain the existing employees of the business. 

Similarly, when you buy an existing business, you can avoid the mistakes most start-ups make. Since the business has been operating for a while, you will also inherit its customers and goodwill, if any. 

However, always do your due diligence before buying any reason. No business owner would want to sell their business for no reason. 

Before you learn how to buy a business with no money, try to understand why entrepreneurs sell their business. Most times, it’s due to financial or personal reasons. But whatever the reasons are, do a thorough investigation before deciding to buy it. 

As part of your investigation, check inventory documents, incorporation paperwork, all contracts, and legal documents, etc. 

5 Primary Reasons People Sell Their Businesses 

If you are planning to buy a business, check out these reasons why people sell their businesses; 

Changes in the Industry 

Changes in the industry could inspire fear in some people to sell their businesses. The changes could be political, socio-cultural, economic, etc. For instance, factors like Brexit could make someone want to sell his business. 

Decline in Profitability 

Most times, people sell their businesses because of a decline in their profitability. These businesses have performed excellently in the past, and they have reached their peak. Except for the new Owner is a strategic thinker, the business profitability may continue to decline. 


Relocation is another common reason most entrepreneurs sell their business. Of course, it’s possible to relocate their business. But it’s usually costly to do that. It can be challenging to move your existing employees, transfer your property, etc. to a new location. 


Most entrepreneurs prefer selling their businesses when they want to retire. Generally, people sell their business when they are approaching retirement to enable them to plan for life after retirement. 

Again, businesses that are for sale due to retirement usually have high sales value. 

Increasing Competition 

Some entrepreneurs don’t like too much competition. Once they observe that the competition in their niche is becoming too strong, they may decide to sell their business. 

Once you decide to buy a business, do a thorough investigation to know why the Owner is selling it. 

Read Also: How to Become a Freelancer

How to Buy a Business With No Money – Financing Tips 

Let me be sincere with you; it’s not easy to buy a business with no money. But it’s possible. You have to be strategic about it. Even some of the most experienced entrepreneurs don’t know how to buy a business with no money. 

Once an opportunity to buy a business presents itself before you, grab it before any other thing. Even though you don’t have the money, you can still purchase it using any of the following financing options; 

Convince the Seller to Finance You 

I know this sounds impossible to you. But if you display a level of professionalism and confidence, the seller may just handle his business to you with the promise of future payment.

Several people have had the opportunity to buy lucrative businesses using this approach. This means that the seller hands over his business to you with the promise of paying back instalmentally from the business’s future cash flow. 

A few months ago, I met my friend who recently bought a business without money. All he did was convince the seller to hand over the business, and he paid for the business in installments. 

The advantage of the approach is that the seller is still tied to the business indirectly. After all, you can’t pay his money if the business isn’t doing well.

However, not every seller will agree to finance you 100% to buy their business. But you may be lucky to get such a deal. 

Friends and Family 

Ordinarily, I don’t support the idea of borrowing money from your family and friends. Trust me; nothing severs a relationship better than money. 

However, if you don’t have any other financing option, you can borrow from your friends and family. As a rule, don’t borrow too much from your friends and families. And ensure that you pay them quickly. 

Leveraged Buyouts 

People who understand how to buy a business with no money always use this financing option. All you have to do is to leverage the business assets to buy the business. 

However, you can always use this method if the business sales value is lower than the assets’ value. Remember, these types of opportunities aren’t always available. But once you stumble on one, don’t let it go. Explore every financing option you discuss in this article. Who knows, you may just be a business owner. 

But the question now is why someone would want to sell his business at a price lower than its assets? Also, why would a business owner finance the buying of his own business? 

These are two questions anybody who reads this article is likely to ask. Here are some of the reasons why business owners may finance you to buy their business. 

Reasons Business Owners May Finance You to Buy Their Business 

Here are some of the possible reasons why a business owner may want to finance you to buy his own business;

#1. The Business May Have Issues 

We are in the 21st century, and business owners can’t give you such a generous offer without some hidden agendas. 

If a business has issues, the Owner may offer aggressive financing to attract a quick buyer. He doesn’t care whether you are making down payment or not. All he wants to do is to unload the problem to the buyer without further delay. 

#2. The Owner Doesn’t Believe in the Business Future 

The business may be having issues, and the Owner doesn’t believe in its future anymore. 

So, he may offer aggressive financing to attract people who are desperate to start something. 

#3. The Owner Can’t find a Buyer with Deposit 

If you understand how to buy a business with no money, you will know that there’s always something fishing in every low price offer you get. 

But in this case, a business owner may decide to opt for 100% financing if he can’t find a buyer willing to make some deposit. 

Read Also: Passive Income Apps to Earn Quick Cash Online

How to Buy a Business with No Money – Financing Options 

Now the business is yours. Your strategy works, what next? Buying a business is just the tip of the iceberg. The real challenge is managing it. And you can’t efficiently manage any business without finance. After all, money is the lifeblood of every business. 

So, here are the three ways to fund your new business operation; 

Factoring Invoices 

One of the challenges most small businesses face is delayed payment from their clients. 

Usually, some clients pay invoices after 30 to 60 days of receiving your products or enjoying your services. This could be an amazing deal for your client. But it’s bad for your newly bought business because you need money to pay your bills. 

So, what you should do is factor invoices. This approach provides you with immediate funds to pay your employees, suppliers, and other expenses. 


You can use a Microloan to finance your newly acquired business. Consider using this option if you need a quick loan of less than $50,000. It’s a good way to improve your business’s cash flow. 

Equipment Leasing 

If your business involves the use of expensive equipment, you can consider leasing one instead of buying. With leasing, you can use any equipment you need to run your business without actually buying. 

However, some leasing agreements are designed to enable you to buy the equipment at the end of the lease. 

Was this article helpful? Don’t forget to share with your friends on social media. And if you have any question let me know in the comment box, I would be glad to help. 

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Article written by:

Writercruze is freelance writer who likes sharing his experience with young and creative minds. He writes about side hustle, make money online, personal finance, freelancing, mini-importation, etc.