Common pitfalls when applying for an SBA 7(a) loan for a $750K business purchase include providing incomplete financial records, underestimating working capital needs, overleveraging personal credit, and failing to clearly demonstrate business cash flow and repayment ability to the lender.

The biggest pitfalls when applying for an SBA 7(a) loan for a $750K business purchase are having a weak cash flow story that makes lenders uneasy, underestimating how much cash you’ll need for the down payment, and submitting messy or incomplete financials that instantly raise red flags. Add in ignored credit issues or a vague explanation of why you’re capable of running the business, and lenders quickly lose confidence. It can feel overwhelming and frustrating, but avoiding these mistakes makes the process far less stressful and keeps the deal from slipping away at the last minute.

Common pitfalls include incomplete or inconsistent financial documentation, which quickly erodes lender confidence. Buyers often underestimate required equity injection and working capital, creating funding gaps late in the process. Another frequent mistake is failing to clearly demonstrate management experience and cash flow coverage, both critical for SBA approval.