Business Acquisition Loan Australia - Finance to Buy a Business

A business acquisition loan helps you fund the purchase of an existing business. Through non-bank lenders, you can access unsecured acquisition finance from $10K to $500K based on the target business's cash flow - without property security or lengthy bank processes.

How business acquisition finance works

When you're buying an existing business, lenders assess the business you're purchasing - not just your personal finances. They want to see that the target business has consistent revenue and can service the loan repayments.

Non-bank lenders assess from the target business's bank statements. If the business you're buying deposits $50K/month consistently, you can typically borrow $50K-$75K unsecured to fund the purchase or working capital for the transition period.

What you can use acquisition finance for

• Funding part or all of the purchase price
• Working capital for the transition period
• Retaining staff during the handover
• Stock and inventory for the new ownership period
• Refurbishment or rebranding costs
• Marketing to announce the new ownership

Acquisition loan vs business overdraft

For funding the purchase itself, a term loan with fixed repayments is usually better - you know exactly how much you're borrowing and when it's paid off.

For ongoing working capital after the purchase, a business overdraft or line of credit gives you flexible access to funds during the transition when cash flow may be unpredictable.

Many buyers use both: a term loan to fund the purchase and an overdraft for working capital.

What you need to apply

• 6 months of the target business's bank statements
• A signed contract of sale or heads of agreement
• Your personal Equifax score 550+
• Your ABN and driver's licence
• If you're already in business: your own 6 months of bank statements

Related

• Business term loans
• Business overdraft for working capital
• Same-day business loan
• Fast approved business loan