Unlike residential properties, commercial properties and especially businesses for sale are much harder to finance. Lenders perceive small businesses as high risk investments and only finance a few of them. In general terms, major financial institutions require that the business buyer invests at least 50% of the total investment from his own money. We have developed solid relationships with some mortgage brokers with expertise in commercial loans and we can refer you to the right mortgage broker if you need financing. We advise our clients to consult with experienced commercial brokers instead of looking for financing themselves for several reasons: 

Mortgage brokers are familiar with the different lenders in the market and their requirements, and they will save you a lot of time by applying directly to the right lender with the higher chances of approval.

Mortgage brokers negotiate interest rates with a large number of lenders and can obtain the lowest rates in the market for you.

Mortgage brokers have the financial expertise to present you and the business to be acquired in the best way, which improves your chances of getting the financing.

Moreover, some business owners are willing to finance a percentage of the total price of the business provided that the buyer has the skills and the business experience to succeed in managing the business. This vendor "take back loan" reassures the buyer that the seller is confident that his/her business is profitable enough to pay for itself and that the buyer has the expertise to be successful in managing the business. While this practice is very common in the US, it is unfortunately not very common in Canada since the majority of sellers would prefer to reduce the price of their business and get paid up front rather than finance a part of the purchase price and get paid a market price.