Options for Financing the Purchase of a WebsiteReprinted with permission from VotanWeb.com Financing the purchase of a website or getting cash for a down payment can take many forms . Hopefully the options listed below give you some ideas on where to get the money to buy a website! Credit Cards: Many buyers these days use their credit cards for the down payment to purchase a website. The downside to this option is that if you are getting an SBA loan to purchase a website, they will not allow you to use “a credit card/loan – borrowed money” for the down payment. Aside from that, this option works for many as there is no need to wait for money or a complicated approval process. SBA Loans: Many websites today are purchased with SBA 7(a) loans. However, there are conditions to convince one to buy a website. You still have to put down between 15% and 30% depending on the lender, you must have good or excellent credit and the website must have sufficient cash flow to support the loan debt service. The loans generally have a term of 10 years and are 2-3 points above the prime interest rate. The process of getting an SBA loan to buy a website can be tedious and can take anywhere from a month to six months to complete/finance. Home Equity: With the rapid growth of home equity, many buyers use these funds to purchase a website or use for a down payment. Lenders are eager to provide home loans. Loans can usually be secured rather quickly, but plan ahead and move quickly so you don't miss out on any great websites that come out on the market for sale. Owner Financing: This form of financing is only applicable to us = when you have a website owner available. Typically the buyer puts down 40 to 60 percent (using one of the methods above) and the owner brings back a note for a term usually between two and five years. Interest rates vary but will usually be higher than bank or commercial asset rates. Sometimes there will be "combo" financing with the owner taking back a partial note and the remainder of the financing coming from the above resources. Retirement Plans – Many buyers have accumulated sizable amounts in their 401(k) plans. There is a way to leverage this tax-free money: put it into a “special trust” that then buys the website for you.