Financing Business Succession Without Equity – Here's How

Good news: Financing is possible even without your own capital. In this article, we show you the best ways to finance a business succession—and how you can realistically plan with our Financing Calculator for Successors.

Why Succession Is Possible Despite Limited Equity

• The purchase price is often based on actual cash flows → a solid foundation for loan financing

• Banks and funding institutions provide targeted support for successions

• The seller can co-finance (e.g., through seller loans)

• There are special funding programs for acquisitions

Overview of Financing Options

KfW Entrepreneur Loan

Suitable for acquiring existing businesses—even without equity, provided viability is demonstrated. Advantages include:

• Long terms (up to 20 years)

• Low interest rates

• Grace periods without repayments

• Liability release up to 80% (for banks)

ERP Capital for Startups

Equity-like, as it is subordinated to bank loans → improves your creditworthiness. Suitable for successors under 45 years old.

Seller Loan

The seller remains financially involved with part of the purchase price—increasing trust and transition security.

Guarantee Banks & Guarantees

If no collateral is available, guarantees can serve as substitutes—often covering up to 80% of the loan amount.

How to Convince the Bank Despite an Equity Gap

• Prepare a viable business plan based on the company’s current status

• Demonstrate your professional qualifications as a successor

• Prove how you can service the purchase price from ongoing cash flow

• Use our Succession Financing Calculator to simulate how much loan you can realistically manage

Conclusion

Even without equity, taking the step into self-employment through a business succession can succeed. What matters is a convincing concept, a solid target company—and a smartly structured financing plan.

Use our Financing Calculator for Business Successors now to explore your options!