Here’s how Sarah Moore, who comes from very humble beginnings, was able afford to buy a successful business without having money.

Her approach shows that buying a business is more about hustle, persistence, and finding the right deal structure than having personal wealth.

The key is finding a business stable enough that banks and sellers are willing to finance the purchase based on the business’s own merits rather than your personal assets.

Purchase structure

• She bought the business using two types of financing:
  1. Bank loan: 75% of purchase price
  2. Seller’s note: 25% of purchase price
• She put essentially $0 of her own money in (her only asset was a RAV4)

What’s a “seller’s note”?

A seller’s note is when the seller agrees to be paid part of the purchase price over time, essentially acting as a bank. For example:

• If business costs $1 million
• Buyer pays $750K at closing (from bank loan)
• Remaining $250K is paid to seller over time with interest
• It’s like the seller giving you a loan for part of the purchase price

How she made it work

1. Found a stable, profitable business (eggcartons.com)
2. Got the seller to agree to take 25% in a seller’s note
3. Approached 20+ banks until she found one that would:
   • View the seller’s note as effectively “equity”
   • Provide a loan for the remaining 75%
4. The bank was comfortable because:
   • Business had long history of profits
   • Bank loan had first priority over seller’s note
   • Business was simple and stable

Key insight

You don’t need personal money to buy a business if:

1. You find a good, stable business
2. Seller is willing to finance part of purchase
3. You can convince a bank to finance the rest
4. Business generates enough cash flow to pay both loans