Guide
Buying an established business can be faster than building one, but the cash planning starts long before closing.
✓ Checking what you qualify for does not affect your credit score.
Short answer: Ask for two to three years of financial statements, tax returns and recent bank statements, and compare what the seller reports with what the bank shows. Fund the price with owner equity, bank or BDC financing and vendor take-back, not short-term advances, and budget separately for the working capital you will need after closing.
Key facts
Related: Practical Business Funding Guides for Canadian Owners · Business Funding Requirements in Canada · Documents Needed for Business Funding in Canada · Business Funding Affordability Calculator (CAD) · Funding Readiness Score Canada: Free 30-Second Check
Buying an established business can be faster than building one, but the cash planning starts long before closing.
Ask for at least two to three years of financial statements, tax returns and recent bank statements. Compare what the seller reports with what the bank shows.
Adjust for the seller's personal expenses and any costs you will add.
Acquisitions are commonly funded with a mix of owner equity, bank or BDC financing and vendor take-back financing from the seller. Short-term advances are rarely suitable for the purchase price itself.
Lenders will want your plan, experience and a down payment.
After closing, you need cash to run the business: inventory, payroll and receivables. Many buyers underestimate this and start under pressure.
Ask whether working capital is included in the price.
Search provincial registries for security registrations against the business. Confirm any advances, leases or loans are paid or properly assumed.
Review leases, supplier contracts and key customer agreements for change-of-control clauses.
Keep customers and staff informed, and ask the seller to stay involved for a transition period. Revenue often dips briefly after a change of owner.
Guides like this one are general education written for Canadian owners. They are most useful when you turn them into a few concrete actions with dates, and revisit them when your numbers change. If funding is part of your plan, the same preparation that makes the plan work, clear numbers and a specific purpose, also makes an application faster and stronger.
Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
It is general education. Your file and agreements are specific, so read them and ask questions.
Gather four months of statements and write what the money is for in one sentence.
Yes. Apply once and the file is matched to the structure that fits.
Educational information only. It is not legal, tax or accounting advice.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
