Specific business acquisition loan requirements vary by lender and loan type, but all will want to see a strong personal and business financial history.
If you want to get a loan to buy a business, it will need to show at least two to five years of stable or growing revenue and overall profitability.
If the business has any financial weaknesses, you may be able to compensate for them by pledging sufficient collateral.
Lenders may not include name recognition and industry goodwill in their decision since these assets are difficult to value and might be unique to the current owner.
Business acquisition lenders might look more favorably on professional services firms with steady income, such as medical and dental practices, veterinary practices, accounting firms, and law firms.
They may look less favorably on risky businesses such as restaurants, strip clubs, and gambling establishments.
They could also consider buyouts less risky since you have already shown some experience running the business successfully; the perceived risk of instability is lower.