Most buyers put in 10% to 30% of the purchase price from their own money. Strong support from the seller, such as part of the price deferred, can bring your cash contribution lower, sometimes below 15%.
What decides your figure
- The target's cash flow: strong, steady profits support more borrowing.
- Vendor support: a seller who defers part of the price reduces the cash you need on day one. Lenders usually count it close to your own money if it ranks behind them. See What is vendor finance?.
- The type of business: asset-light service businesses tend to need a bigger contribution, because there's less for a lender to secure against.
- You: your experience and track record.
It's a share of the price, not the loan
Your contribution is measured against the purchase price, not against what you borrow.
Why putting in too little is a risk
A business bought with very little of the buyer's money carries more debt, and has to service it from its own cash. If trading dips after completion, there's little room. We regularly see buyers come back soon after a deal needing working capital, or needing to refinance the deal loan or the seller's deferred payments. Those are signs the purchase was underfunded. See Can I buy a business with no money down?.
Last reviewed: 8 October 2026