Equity Required
The cash you need to put in from your own pocket to buy the business. What's left after bank loans and seller financing. Usually 20-40% of the purchase price plus transaction costs.
- How it's worked out
- Total Money Required − Bank Loan − Seller Financing
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
Related measures
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