73% of small business acquisitions involve some form of third-party financing. Business acquisition loans in Elgin provide the capital you need to purchase an existing company, buy out a partner, or acquire a franchise location.
Acquisition financing pays for the purchase price of an operating business, its inventory, equipment, real estate, and goodwill. Lenders typically finance 70-90% of the transaction value, requiring you to inject equity for the remainder. Funds disburse at closing through escrow, protecting both buyer and seller. Stonecroft Funding brokers these deals across Elgin's industrial corridor near Airlite Street and the retail zones stretching into Bartlett and Streamwood.
Checklist: What You Can Finance
- Purchase price and seller earnout structures - Existing inventory and receivables - Fixed assets (machinery, vehicles, furniture) - Commercial real estate tied to the business - Working capital for the transition period
Lenders evaluate your management experience, industry knowledge, and the target company's cash flow. Most programs require at least two years in a related field, a credit score above 650, and a down payment of 10-20%. The business you're buying must show consistent revenue and a logical reason for the sale. Stonecroft Funding Group reviews your scenario before submission, connecting Elgin buyers with acquisition financing lenders who understand local sectors like precision manufacturing in East Dundee and hospitality along the I-90 corridor.
Checklist: Qualification Steps
1. Gather three years of target-business tax returns 2. Document your industry background and resume 3. Prepare a transition plan and pro-forma financials 4. Secure a letter of intent or purchase agreement
SBA loans
SBA 7(a) loans allow up to 90% financing with longer amortization, making them ideal for first-time buyers and franchise acquisition financing. Conventional acquisition loans close faster but demand larger down payments and shorter terms. Bridge loans for business acquisition fill timing gaps when seller financing or earnouts create complexity. Stonecroft Funding brokers all three structures, tailoring the match to your equity position and the seller's exit timeline.
How it works
Call (847) 857-6433 to schedule a checklist session at our office: 87 N Airlite St, Elgin, IL 60123. We'll review the purchase agreement, map your equity sources, and submit your file to multiple acquisition loan lenders simultaneously. Our broker network includes community banks familiar with Elgin's family-owned manufacturers and national platforms that fund franchise acquisitions in Carpentersville and Gilberts. You'll receive term sheets within 10-15 business days, and we guide you through due diligence, appraisal, and closing.
Checklist: Application Documents
- Signed letter of intent or purchase agreement - Target business financials (P&L, balance sheet, tax returns) - Personal financial statement and tax returns - Business plan outlining post-acquisition strategy
A machinist with 15 years at a West Dundee shop wanted to buy his retiring employer's operation. The seller agreed to a five-year earnout, complicating the capital stack. Stonecroft Funding structured an SBA 7(a) loan covering the upfront purchase price, layered with a small business acquisition loan for working capital, and coordinated the earnout as subordinated seller debt. The deal closed in 60 days, keeping the shop's 12 employees in place and preserving relationships with Elgin-area OEMs.
Explore more funding options on our Elgin, IL business loans hub, review SBA 7(a) loans for detailed program rules, compare equipment financing for asset-heavy purchases, or check our commercial real estate loans page if the deal includes property. Visit our Service Areas page to confirm coverage in Sleepy Hollow, Wayne, and beyond.
Serving the Elgin area
We know which lenders fund which kinds of Elgin businesses, and we position your file where it fits.
One local broker, many lenders, and no cost to apply.
Common questions
Talk to a local advisor and get matched to the right program, no obligation.
