--- title: Do you need finance to buy an existing business? description: Do you need finance to buy an existing business? --- [Skip to content](https://knowledge.fundsmart.co.za/do-you-need-finance-to-buy-an-existing-business#main-content) [![african-bank-updated-logo](https://knowledge.fundsmart.co.za/hs-fs/hubfs/african-bank-updated-logo.png?width=156&height=50&name=african-bank-updated-logo.png)](https://africanbank-finfind-za-145870874.hs-sites-eu1.com/understanding-the-credit-record-system?hsLang=en) Open main navigation Close main navigation Need help understanding how business funding works? - There are no suggestions because the search field is empty. 1. [Funding info](https://knowledge.fundsmart.co.za/?hsLang=en) 2. [Understanding business funding](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en) 3. [Different funding needs](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-funding-needs) # Do you need finance to buy an existing business? ### Buying a business Finance for buying an existing business is treated differently from finance to start a business. Unlike a start-up, if the business already exists, it is easy to check its past financial trading history and the future orders it has already secured, and this makes lenders more comfortable.    If you are a previously disadvantaged South African citizen who wishes to buy an existing business, then government lending agencies may be your best bet for raising finance.   ### What are your options? Below is a list of possible finance options that are available to finance the purchase of an existing business. The best option will depend upon the amount of finance you need, the approval terms and the repayment terms offered by the lenders. Options such as term loans, government lending agencies, and equity finance are suited for the purchase of businesses that require a significant investment.    If, however, you need a smaller amount to start a business you could consider using raising finance in your personal capacity. In this case,  overdrafts, credit cards or home mortgages could work.    You might also consider approaching  [SEFA](https://knowledge.fundsmart.co.za/sefa?hsLang=en) (Small Enterprise Finance Agency) as they fund both small and large amounts, providing you can show that the business will be sustainable.    **Details of each loan are explained below:** - [Term loans](https://knowledge.fundsmart.co.za/understanding-term-loans?hsLang=en) - [Equity finance](https://knowledge.fundsmart.co.za/equity-finance-1?hsLang=en) - [Personal or business overdrafts](https://knowledge.fundsmart.co.za/personal-or-business-overdrafts?hsLang=en) - [Personal or business credit cards](https://knowledge.fundsmart.co.za/personal-or-business-credit-cards?hsLang=en) - [Home loan](https://knowledge.fundsmart.co.za/home-loan?hsLang=en) - [Seller finance](https://knowledge.fundsmart.co.za/seller-finance-1?hsLang=en) - [Government lending agencies](https://knowledge.fundsmart.co.za/government-lending-agencies?hsLang=en). - Return to [Home page](https://knowledge.africanbank.finfind.co.za)   - [Understanding business funding](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#main-content) - [Challenges to accessing finance](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#challenges-to-accessing-finance) - [Different funding needs](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-funding-needs) - [Different types of funders](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funders) - [Different types of funding products](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funding-products) - [Credit scores and reports](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#credit-scores-and-reports) - [Learn more](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#learn-more) - [Funding options for startups](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#main-content) - [Angel investors](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#angel-investors) - [Credit cards](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#credit-cards) - [Crowdfunding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#crowdfunding) - [Family and friends](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#family-and-friends) - [Government funding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#government-funding) - [Home loan](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#home-loan) - [Incubators and enterprise development programmes](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#incubators-and-enterprise-development-programmes) - [Overdrafts](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#overdrafts) - [Social enterprise funding/impact investing](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#social-enterprise-funding-impact-investing) - [Venture capitalists](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#venture-capitalists) - [Funding Glossary](https://knowledge.fundsmart.co.za/funding-glossary?hsLang=en) ©Copyright 2026 African Bank. 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