SBA 7(a) loans are one of the most powerful tools available for buying a business, whether it's a brick-and-mortar operation, an online brand, or a service-based company. But if you're new to the process, it's easy to feel overwhelmed or fall into common misconceptions.
At eCommerce Lending, we've worked with thousands of first-time buyers across all industries. And time after time, we see the same misunderstandings that slow things down or lead to avoidable issues. Here’s what you should know upfront so you can move forward with clarity and confidence.
❌ Mistake #1: Thinking You Need Perfect Credit
You don’t need an 800 credit score to get approved. While good credit is important, lenders take a holistic view of your profile. They’ll also consider your liquidity, work experience, debt-to-income ratio, and how well you’re positioned to run the business you’re acquiring.
If your credit has a few dings, don’t assume you’re disqualified, just talk to us first. We can often find a path forward.
❌ Mistake #2: Waiting to Get Prequalified
Too many buyers wait until they’ve found a business before they start thinking about financing. That’s often too late.
Getting prequalified early helps you:
• Understand your budget
• Strengthen your offer
• Move faster when it counts
Even if you’re just starting your search, we recommend getting prequalified so you’re ready to move when the right deal comes along.
❌ Mistake #3: Underestimating the Cash You’ll Need
An SBA loan typically requires a 10 percent down payment. Some buyers assume that seller financing or outside capital will cover it, but that’s not usually allowed under current SBA rules.
You’ll need to show personal, verifiable funds, ideally in your name and seasoned for at least 60 days. We’ll walk you through exactly what counts and how to prepare.
❌ Mistake #4: Overestimating How Quickly the Process Moves
Many buyers are surprised by how much coordination and documentation the SBA loan process requires. While some deals move quickly, others can take significantly longer depending on the deal structure, responsiveness, and how prepared the buyer is.
The key is getting organized early. Having your documents ready and working with a team that specializes in business acquisitions can help avoid unnecessary delays. As we often say—time kills deals, so preparation matters.
❌ Mistake #5: Trying to Navigate the Process Alone
Many first-time buyers try to manage everything themselves or rely on a lender who doesn’t specialize in acquisitions. That often leads to confusion, missed steps, and deal fatigue. A dedicated acquisition lending team can make all the difference in getting to the finish line efficiently and confidently.
✅ How to Set Yourself Up for Success
The SBA loan process doesn’t have to be confusing. The key is getting expert guidance early and understanding how to prepare. Our team works with both first-time and experienced buyers to simplify the process, avoid delays, and close with confidence.
💬 Ready to Get Started?
We’ve helped thousands of buyers secure SBA financing for all types of business acquisitions, with a 98% approval rate and over $1B in deals closed.
Visit our website to fill out a quick form and schedule a call. We’ll guide you through every step.
-The eCommerce Lending Team
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