Funding the Purchase of an Existing Texas Business

What you are really buying

When a Texas business changes hands, the buyer gets customers, equipment, a lease, a name and a set of habits. What the buyer rarely gets is a cash cushion. The seller usually keeps the bank balance, so the new owner starts with the machinery and the customers but with little money to run on. That is the moment many acquisitions get strained.

Costs beyond the purchase price

• Inventory top-up. Shelves and stockrooms rarely come full.
• Transition payroll. You may keep the team while the previous owner's relationships transfer.
• Deposits and transfers. Utilities, licenses, insurance and sometimes the lease.
• Professional fees. Legal, accounting and brokerage costs fall around closing.
• First-quarter surprises. Repairs and fixes that the seller deferred.

Reading the seller's numbers

Before buying, ask for records that show how cash moves through the business, not only profit. A business can look profitable and still run short in particular months. Ask which customers account for the largest share of sales, whether any contracts depend on the previous owner personally, and when the busiest and slowest periods fall. For an illustration, a shop that earns most of its sales in two months of the year will need working capital to survive the other ten.

Two ways to think about the money

Many buyers plan carefully for the left column and run short on the right. Having working capital available for the first quarter is a hedge against that.

A short pre-closing checklist

1. Confirm who owns the equipment and whether any of it is leased or financed.
2. Read the lease for assignment terms and remaining length.
3. List the licenses and permits that must be transferred or reissued.
4. Decide how many weeks of operating costs you want available on day one.
5. Agree how the seller will introduce you to key customers and suppliers.

None of this is legal advice. A lawyer and an accountant should review the actual deal. The checklist exists to make sure the cash conversation covers the first quarter, not only the signing date.

What we do and do not do

We fund $25,000 to $5,000,000 for business needs, including the working capital that supports a new owner's first weeks. We are not a bank and we do not set the purchase price or structure the deal. Funding can arrive in as little as 24 hours, and the application takes about five minutes with a soft credit pull. Sole proprietors can apply. If you are in the middle of a transaction, start your application and describe the timeline.