If you are looking to buy an existing business with no money down, you might try to find a lender that will allow you to secure the loan with the assets of the business you’re purchasing.
Sometimes called a leveraged buyout, by using the assets of the business you’re buying as collateral, you’re able to secure the loan without offering money upfront. In this case, if you were to default on the loan, the lender would simply claim the assets of the business to recoup their losses.
In this way, a leveraged buyout is similar to other self-collateralizing forms of financing, such as equipment or invoice financing.
Learn more about no money down business loans in our guide.