Business Purchase Finance
Finance for the acquisition of a business, goodwill, franchise licence or going concern. We assess business purchase lending scenarios and approach lenders suited to your industry and structure.
Who is business purchase finance suitable for?
Business purchase finance is relevant for individuals and companies seeking to acquire an operating business, its goodwill, stock, plant and equipment, or a franchise arrangement. Common purchasers include first-time business buyers, existing operators expanding into new locations or complementary businesses, and investors acquiring a business as an income-producing asset.
Common uses
- Purchasing an existing business as a going concern
- Acquiring a franchise or franchise territory
- Buying out a business partner or co-owner
- Financing the purchase of goodwill as part of a professional practice acquisition
- Funding a management buyout
How lenders assess business purchase applications
Business acquisition lending is complex because the primary security (the business itself) is not real property. Lenders assess the historical performance of the business being acquired, the buyer's industry experience, the terms of the purchase contract, the strength of any real property security available, and the post-acquisition serviceability (whether the business can generate sufficient income to service the loan after the buyer takes over).
Goodwill is generally not accepted as security by most mainstream lenders on its own. Real property (owned by the borrower or provided by a related party as guarantor) is often required as additional security. The availability and terms of finance depend significantly on the industry type, business profitability and the buyer's profile.
Typical documentation required
- Business sale contract or heads of agreement
- Two to three years of the target business's financial statements
- Vendor's tax returns and BAS statements
- Industry and market information to support projected performance
- Buyer's personal financial statements and tax returns
- Evidence of industry experience or qualifications
- Details of any real property security available
Frequently Asked Questions
Can I finance the purchase of a business without real property security?
Unsecured or low-security business purchase loans exist but are more limited and typically available for smaller amounts. Real property security significantly broadens lender appetite and improves terms. We assess what security is available in your scenario and identify appropriate lenders.
How much deposit do I need to buy a business?
The deposit required depends on the lender, the type of business, the amount of real property security available and the purchase price. There is no single answer — this is assessed individually. We discuss realistic expectations based on your specific scenario.
Will lenders finance the purchase of a franchise?
Some lenders have approved panels of franchise brands and will lend against franchises from those networks. Others assess franchise lending case by case. The strength of the franchise brand and historical franchise performance data affect appetite.
What is goodwill and how do lenders treat it?
Goodwill is the value of a business beyond its tangible assets — the customer base, reputation and established relationships. Most lenders do not accept goodwill alone as security. They prefer tangible assets (property, plant) to secure commercial loans. This affects the maximum amount available for a business purchase without real property security.
Does my industry affect my ability to get business purchase finance?
Yes. Lenders view industries differently. Businesses in stable, established industries (professional services, medical, legal) may attract broader lender appetite than businesses in volatile, seasonal or hospitality industries. We identify lenders with appropriate industry appetite.
What if the business I'm buying is not profitable?
Lenders will assess the business's ability to service the loan under the new owner's management. If the current business is not profitable, demonstrating a credible turnaround plan supported by industry experience is important. This is a challenging scenario and is assessed on its merits.
Get a Business Purchase Assessment
General information only — not personal financial or credit advice. All finance subject to lender assessment and approval. Michael Short, Credit Representative 468493 under ACL 389328.