Business Down Payment Calculator
See how much cash you need up front for a given purchase price, and how much you'd have to finance. Adjust the percentage to match what your lender expects.
Find lenders who fund Canadian business acquisitions, or get matched based on your deal size and province.
Why lenders want a down payment
A down payment is your skin in the game. Small business loans are secured mostly by goodwill and cash flow rather than hard assets, so lenders want the buyer carrying real personal risk before they advance funds. It also creates an equity cushion: if the business underperforms in year one, the lender isn't immediately underwater.
In Canada, 20–30% down is the common range for an acquisition loan. It can fall closer to 10–15% when there's a strong vendor take-back note, significant real estate or equipment security, or a buyer with direct industry experience. It rises above 30% for service businesses with few assets, thin books, or first-time buyers.
Work backwards from what you have with the affordability calculator, then price the financed portion with the business loan calculator. Our guide on how to finance a business purchase in Canada explains what lenders look for.
This calculator gives an estimate for planning purposes only and is not financial, tax, or legal advice. Your lender sets the actual down payment requirement.
Frequently asked questions
Typically 20–30% of the purchase price. Asset-light service businesses sit at the higher end because there's less collateral; deals with equipment, real estate or a strong vendor take-back can sometimes be done closer to 10–15%.
Sometimes. If the seller finances part of the price and formally postpones their claim behind the bank, lenders may count that note toward your equity. It's negotiated deal by deal — get the lender's position in writing before you structure the offer.
Budget 2–5% of the purchase price for legal fees, accounting and due diligence, plus working capital for payroll, inventory and receivables in the first months. Closing adjustments for inventory or prepaid expenses can also land on your side of the table.
Buyers commonly use a home equity line of credit, and some use registered funds or family loans. Each route carries tax and risk consequences — withdrawing from an RRSP is taxable income, and a HELOC secures your business risk against your home. Talk to an accountant before committing.