Financing
Model SBA 7(a) loans, seller financing, and blended capital stacks for ecommerce acquisitions. Monthly payment, DSCR, break-even — free. No signup.
$120K equity injection
$80K seller note
SBA 7(a) loan covers the remaining 75% — about $600K. Standby seller notes typically count toward your 10% equity on SBA deals.
Total monthly debt service
$9,643
Blended rate 9.97%
DSCR (SBA minimum 1.25)
1.56×
Break-even on equity
About 23 months (1.9 yrs) of net cash flow recovers the $120K equity injection.
Estimates only. Actual SBA rates, fees (guaranty fee up to 3.75%), and eligibility are set by your lender. Standby seller notes count toward the SBA 10% equity requirement only when structured as true standby (no payments for the SBA loan term).
Next step
5-minute SBA pre-qualification through eCommerceLending. No credit pull.
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Most SBA-financed ecommerce acquisitions combine three sources: your equity (down payment), a seller note (money the seller leaves in the deal), and an SBA 7(a) loan for the balance. The blended rate is the weighted average of the SBA and seller-note rates across the financed principal.
SBA 7(a) requires at least 10% equity. Up to half of that can come from a full-standby seller note (interest-only or no payments for the term of the SBA loan), effectively cutting the owner's cash-down to 5%. Lenders have additional overlays, so plan for 10–15% in most cases.
SBA 7(a) lenders typically require a minimum Debt Service Coverage Ratio of 1.25×, meaning the business cash flow is at least 1.25 times the total annual debt payment. Below 1.25×, you'll need to either reduce debt (bigger down payment or seller note) or show rock-solid projections.
We divide your equity down payment by the business's net monthly cash flow (monthly SDE minus total debt service). If the business produces $5k of net cash after debt service and you put $100k down, break-even on your equity is roughly 20 months. It ignores taxes and owner salary — treat it as a ballpark.
SBA 7(a) rates are variable: Prime + a spread capped by the SBA (currently 2.25–2.75% spread on most loans over $50k). With Prime around 7.5–8%, expect 10–11% on most deals. Rates reset quarterly on variable loans.
The math is the same — amortization is just principal, rate, and term. Replace the SBA rate/term with your conventional terms. What changes is the qualification: conventional lenders usually need larger down payments and stronger collateral than SBA.