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Maneuvering The Art of Securing an SBA Loan | eCommerce Business Funding | Website Closers

Business Loan


Buyers looking for an eCommerce company to purchase usually know what they want: good profits, a thriving customer base, excellent supplier relations, a proven marketing plan and plenty of scale options. Owning a business that already has a track record of success is a considerably smarter investment than starting an eCommerce shop from scratch and building it up.

Purchasing any kind of business, whether it’s eCommerce, a brick-and-mortar shop or a franchise, often starts with securing financing. Fortunately, any eCommerce site looking for a leg up has the ideal option through an SBA-guaranteed loan.

The U.S. Small Business Administration helps business owners access funds to get a business launched or expanded, and that certainly includes eCommerce companies. The good news:

  • SBA loans are easier to qualify for than more traditional ones
  • A business owner with inventory can qualify if they need capital
  • SBA loans are made to fit a wide variety of business ventures
  • It’s estimated that 97% of U.S. businesses qualify for small business loans

On the other hand, the application process requires extensive documentation, and it can take from 60-90 days for an SBA loan to be approved. If you’re considering buying an eCommerce business, it’s best to get your loan application in as quickly as possible.

How does this process work? Let’s take a closer look at how SBA loan options compared to other commercial financing options.

How Does the SBA Loan Program Work?

Instead of lending money directly to small business owners, the SBA guarantees up to 85% of the loan amount. With less risk posed to the lending institution, lenders approved by the SBA are more eager to work with small business applicants. Several SBA programs exist, including:

  • The SBA 7(a) program provides loans up to $5 million;
  • Express loans of up to $500,000 and repayment terms of up to 5-10 years;
  • Microloans, usually available from $13K to $50K.


To quality, you’ll be required to provide records that show:

  • Your business plan
  • Business and personal tax returns
  • Balance sheets
  • Business debts
  • Profit and loss statements


If your loan is approved, the SBA sends you an email outlining the terms. After the approval, it can take several weeks for the lender to prepare the loan agreement and commitment letter, giving you time to thoroughly review it.


How Do SBA Loans Compare to Other Business Loans?

You have other options for financing, of course. If you’re not looking for government-backed loans because you need capital right away, there are plenty of online lenders or business credit cards to consider. In addition, buyers can consider:

  • A business line of credit
  • Inventory/purchase order financing
  • Invoice financing
  • eCommerce grants

Today, there are more ways to secure eCommerce funding than ever before, giving prospective buyers different types of financial plans to explore, depending on how quickly you need the money, how much you need, and what kind of financial history you can show a lender.

But it’s important to keep in mind how financial assistance through loans can be the lifeline of eCommerce today, considering how many new businesses come online every week, intensifying the competition. Even well-established brick-and-mortar retail establishments have significantly expanded their eCommerce arm to grow sales. Whether you’ve found the perfect online business to buy, or you need money for an expansion, an SBA loan could make a significant difference in the long term.


Government-back financing is particularly significant for increasing your eCommerce sales heading into 2023. eCommerce is getting more relevant every year, which is why so many companies are switching to this model to maximize profits and provide a new, higher level of convenience to customers.


Today, access to capital when your business needs it most will optimize sales. If you’re facing revenue challenges, small business funding will help you keep up with the astonishing growth in demand for products available online.


To secure an SBA loan, it’s going to help if you can show:


  • Solid Personal Credit
  • Experience in eCommerce
  • The necessary amount of “post-closing” liquidity
  • 5-10% cash down payment

If you checked all these boxes, you should be good to go. These are the qualifications that most small business eCommerce lenders consider on an application when an SBA loan is being used for purchasing an online business. While SBA loans are available to owners of an existing eCommerce business, they’re also ideal for someone who wants to buy an online business.

How Much Experience Do You Need to Buy an Online Business?

What if you want to buy an eCommerce company that’s up for sale, but you don’t have much experience operating a digital business? In order to qualify for business loans, do you actually need experience to buy an online business?

Clearly, lenders evaluate a lot of different factors, and their own common sense and best judgment play a role. If the buyer comes across as someone likely to be in over their head, chances are the loan application will be shaky.

On the other hand, new eCommerce shops are launched every week by individual entrepreneurs operating out of their home laptops, so eCommerce eliminates the challenges of maintaining a physical store, and often the need for warehousing or inventory if they use a DropShip model. If you’re new to eCommerce, having a business plan that outlines your planned duties and how the business will be run should go a long way to help cover any gaps in your knowledge. It helps to offer a very honest assessment of how you plan to operate the company.

Often times when a seller puts their business up for sale, the owner will offer to stay on for a period of time to assist the buyer with the transition. That’s something else that SBA lenders consider. The SBA allows sellers to remain in a consultant position for up to 12 months. Having the individual who made this business a success stay on board will definitely help with the application.

Can You Secure 100% Financing to Buy an eCommerce Shop?

What if you want an SBA loan to cover 100% of your eCommerce business purchase? Lenders don’t like to admit this, but it is possible under certain circumstances.

One way to do this is to have an existing eCommerce business that you own. It helps if you plan to buy a new one in the same industry. If you can demonstrate good credit and a strong cash flow on both your existing business and the one you want to buy, you can likely get 100% financing to purchase the new one.

It’s essential to demonstrate that:

  • This buy is a genuine expansion of your existing business
  • Your current business is on solid financial ground
  • The business you want to buy is in the same industry

The bottom line is that worldwide eCommerce sales rose from $1.3 trillion in 2014 to $4.5 trillion in 2021, so lenders are taking funding for eCommerce businesses very seriously today. That means you have lots of options, including firms that offer eCommerce venture capital provided by large investors.


Learn More About Your SBA Options from Our Brokers

If you’re interested in buying an eCommerce business, now is the time to get started. At Website Closers we have an experienced and dedicated team of professionals who can help you find the business that perfectly suits your needs. We have some of the best offerings on the Internet, and we’re available to discuss the smartest options for your investment needs.


You can search our current businesses for sale by industry or price. You can sort the results by Asking Price, Cash Flow, or Revenue.  Once you find a business that you think is right for you, we’ll be ready to assist you in buying the business of your dreams.