Business Purchase Finance

Business purchase finance is funding used to help buy an existing business. It can finance some or all of the purchase price depending on the strength of the business being acquired, your experience, financial position, available contribution and any security available.

We assess the business you're looking to buy, the purchase price, its financial performance, your experience, deposit or equity, credit profile and proposed ownership structure. We then compare suitable finance options across our panel of 80+ banks and non-bank lenders to find a competitive rate and structure for the acquisition.

Yes. Eligible buyers can use business finance to purchase an established business. Approval generally depends on both the strength of the business being acquired and your ability to successfully operate and service the proposed debt.

The amount you can borrow depends on the purchase price, profitability and cash flow of the business, your experience, financial position, deposit or equity, available security and ability to service the loan. Larger or stronger transactions may qualify for significantly higher funding amounts.

Often, but the required contribution varies considerably. The lender may consider the business being acquired, purchase price, financial performance, industry, your experience and any additional security available. A stronger application or additional security can potentially reduce the amount of cash you need to contribute.

Potentially in some circumstances, particularly where additional acceptable security or sufficient equity is available. However, many business acquisitions require the buyer to contribute some of their own funds. The structure depends on the business, borrower and security position.

Potentially. Available equity in eligible residential or commercial property may be used to support a business acquisition. This can potentially increase your borrowing capacity or reduce the amount of cash required to complete the purchase.

Potentially. Unsecured business purchase finance may be available for some transactions, particularly where the amount required is smaller and the business demonstrates strong cash flow. Larger acquisitions are more likely to require a contribution, security or a combination of funding sources.

Timing depends on the size and complexity of the acquisition. Straightforward transactions may receive an indicative decision quickly, while larger purchases can require detailed financial analysis, due diligence, valuations and legal documentation before approval and settlement.

Rates depend on the loan amount, term, business being acquired, financial performance, buyer experience, credit profile, deposit and available security. We compare rates, fees and structures across suitable lenders and negotiate pricing where possible to help secure a competitive deal.

Loan terms vary depending on the type of finance, amount, business, security and lender. Unsecured acquisition finance generally has shorter terms, while property-secured facilities may provide longer repayment periods. We compare the term alongside the rate and repayments to help structure finance around the business's cash flow.

Lenders generally consider the historical and current financial performance of the business, profitability, cash flow, purchase price, industry, existing debts, customer concentration, assets, your experience, credit profile, contribution and available security. A strong business doesn't automatically guarantee approval — the overall transaction and your ability to operate and repay the finance are also important.

Requirements vary, but lenders commonly want sufficient historical financial information to understand how the business has performed over time. This may include financial statements, tax returns, BAS, bank statements and current management accounts. The requirements depend on the lender and complexity of the acquisition.

Potentially, although business acquisitions often require more information than straightforward working capital finance. Low-doc options may be available in certain circumstances, particularly where strong security is provided, but requirements vary significantly between transactions.

Yes. Existing business owners and self-employed applicants can obtain finance to acquire another business, subject to eligibility. Your existing business performance, experience, financial position and the strength of the business being acquired can all support the application.

Potentially. Previous business ownership isn't always required, although relevant industry, management or professional experience can strengthen an application. Lenders will want to understand how you intend to operate the business and whether its cash flow can support the proposed finance.

Potentially. Credit issues don't automatically prevent you from financing a business acquisition, although they may reduce your lender options or affect the rate, deposit and security requirements. The strength of the business being purchased and your overall financial position will also be considered.

Potentially. Some business acquisitions can be financed without residential or commercial property security. Eligibility depends on the purchase price, business cash flow, buyer contribution, industry, credit profile and lender appetite.

Potentially. Business acquisitions often include intangible value such as goodwill in addition to physical assets. The amount a lender is prepared to finance against goodwill depends heavily on the strength, profitability and history of the business being acquired.

Yes. Where the business purchase includes eligible vehicles, machinery or equipment, those assets may potentially be financed separately from other parts of the acquisition. Using different finance structures can sometimes help reduce the amount required under the main business purchase loan.

Potentially. It's important to consider not only the purchase price but also how much working capital you'll need after settlement. Depending on the application, additional funding may be structured to help cover stock, wages, suppliers and other operating expenses after you take ownership.

Potentially. Stock and inventory may form part of the acquisition, but the way it is funded depends on the transaction and lender. The lender may treat stock differently from equipment, property and goodwill when determining the overall finance structure.

Potentially. Business purchase finance can be used for some partnership buy-ins, shareholder acquisitions or purchases of an ownership interest in an existing business. The lender will assess the ownership structure, business performance and transaction details.

Potentially. Finance may be available to fund a partner or shareholder buyout, allowing the remaining owner or owners to acquire another party's interest in the business. Approval depends on the business's financial performance and the proposed post-transaction structure.

Potentially. Management buyouts may be financed where an existing manager or management team purchases the business from its current owners. Existing knowledge of the business and relevant management experience can help support the application.

Yes, subject to approval. Established businesses may use acquisition finance to purchase a competitor or complementary business as part of their growth strategy. The lender will generally assess both the existing business and the business being acquired.

Yes. Franchise acquisitions can be financed, although franchise finance has its own considerations, including the franchise system, agreement, fees, location, business performance and your experience. New and existing franchises may be assessed differently.

Potentially. Business acquisitions can be completed through companies, trusts and other structures, subject to lender requirements. Ownership structures can have significant legal and tax consequences, so professional advice should be obtained before finalising the purchase.

Potentially. Depending on the size and structure of the transaction, the lender may require a formal business valuation or undertake its own assessment of the purchase price and business value. Property and other assets offered as security may also require separate valuations.

Requirements vary, but you may need identification, details of the proposed ownership structure, information about your experience, the contract or heads of agreement, historical financial statements, tax returns, BAS, current management accounts, business bank statements, details of assets and liabilities, lease information and evidence of your deposit or available equity.

Where possible, it's sensible to understand your finance position before committing unconditionally to a purchase. If you sign before finance is finalised, appropriate finance and due-diligence conditions can be important. You should obtain independent legal advice before signing a business purchase agreement.

Potentially. Some transactions include vendor finance, where the seller agrees to receive part of the purchase price over time. A lender will need to understand and approve the overall structure, and vendor finance can affect how much external finance is available.

Potentially, although these costs aren't automatically included in the amount financed. Your total funding requirement should account for the purchase price as well as working capital, professional fees, taxes, stock and other transaction costs where applicable.

Getting an initial quote with Overdrive does not require an upfront credit check. We can assess the proposed acquisition and compare suitable options before progressing to a formal application. If you decide to proceed, the selected lender may conduct credit enquiries as part of its assessment.

Business purchase finance can help you acquire an established business without funding the entire purchase from your own cash. The right structure depends on the business's profitability and cash flow, purchase price, your contribution, experience, security and the working capital you'll need after settlement.