Taking Over a Business: 6 Specific Financing Options That Buyers Forget

This guide is based on official data from INSEE, CCI France and competent public bodies. Information is verified and updated regularly.

Taking over a business is expensive — the average price of a small business is between €100,000 and €500,000, that of an SME between €500,000 and €5 million. The buyer's personal contribution cannot cover everything. Here are 6 financing levers too often overlooked.

1. BPI France transmission guarantee

Principle: BPI France guarantees up to 70% of the bank loan taken out to purchase a business. Guaranteed amount: up to €1.5 million Cost: guarantee commission of 0.6% to 1% of the guaranteed amount

Why it's decisive: without a guarantee, banks often require personal collateral (mortgage on the main residence, spouse's guarantee). The BPI guarantee replaces them.

How to benefit: the request is made through your bank. It is they who request BPI France when putting together the financing file.

2. Initiative France transmission loan

Amount: €10,000 to €50,000 (up to €100,000 for projects over €500,000) Rate: 0% Duration: 2 to 5 years Guarantee: none — honor loan on word

This loan plays the same leverage role as for creation: each euro from Initiative generates on average €8 in additional bank financing.

Difference from creation loan: amounts are higher and the approval committee specifically evaluates the fit between the buyer and the target company.

3. Seller credit

Principle: the seller agrees to receive part of the sale price in installments (generally 20 to 30% of the price over 2 to 4 years). Rate: negotiable, often 2 to 4%

Advantages for the buyer:

• Reduces immediate bank financing needs
• The seller has an interest in the business continuing to operate (they are a "creditor")
• Signal of confidence for banks: if the seller accepts seller credit, it means they believe in the company's viability

Point of caution: always formalize seller credit in the sale agreement, with a precise payment schedule and guarantees (pledge of shares).

4. Earn-out clause

Principle: part of the price (10 to 30%) is conditional on achieving future objectives (maintaining turnover, key contracts, profitability). Period: generally 1 to 3 years post-sale

Advantages:

• Reduces the risk of overpaying for the business
• Aligns the interests of seller and buyer during the transition
• Defers part of the payment

Attention: earn-out criteria must be objective, measurable and not manipulable by the buyer. Have the clause drafted by a specialized lawyer.

5. Simplified LBO (Leverage Buy Out)

Principle: you create a holding company that borrows to purchase the target company. The company repays the loan through its profits (dividend remittance).

Typical structure:

• Personal contribution to the holding: 20-30%
• Holding company borrowing: 70-80%
• The purchased company pays dividends to the holding which repays the debt

Tax advantage: the parent-subsidiary regime allows quasi-exemption of remitted dividends (only a 5% share is taxable).

For whom: profitable companies with sufficient EBITDA to repay acquisition debt. Generally applicable from €200,000 in purchase price.

6. Crowdlending (participatory loan)

Principle: individuals and SMEs lend directly to the buyer via an online platform. Amount: €10,000 to €500,000 Rate: 4 to 8% (higher than a bank loan) Duration: 2 to 5 years

Main platforms: October (formerly Lendix), Credit.fr, PretUp

When to use: as a complement to the bank loan, to complete the financing plan when €10,000-20,000 is missing. Crowdlending is faster to obtain (2-3 weeks) and does not require personal guarantee.

Typical financing plan for a €300,000 acquisition

Total: €300,000 with only €60,000 actual contribution.

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Build your acquisition file with the Acquisition Business Plan module and the Aids Simulator.

Sources: BPI France 2026, Initiative France, CRA (Sellers and Buyers of Businesses), BPCE Observatory of transmission.