If I am looking to buy an accounting practice, will a down payment be required?

Yes.

If you are looking at putting cash down, the seller will require a down payment at closing. This helps the seller know that you are committed to this purchase. We trust you can appreciate this from the sellers perspective.

If you are looking at outside bank financing, most lenders will require at least a 10%-20% cash injection depending on the size of the loan, cash flow of the practice, buyer’s credit history and a variety of other factors. Most lenders will also loan money for additional working capital. There are both conventional and SBA lenders. A vast majority of our recent deals have been SBA loans.