Quick answer
For a call about finance to buy a business, have the business name, price and what's included (stock, plant, goodwill), the seller's financial statements and tax returns you've been given, lease terms, the settlement date, your own contribution and any property you could offer as security. The specialist will ask about your industry experience, whether the lease is secure, and how the business will service the loan.
Key points
- The seller's financials are the starting point — lenders assess the business you're buying, and you.
- Your experience in the industry matters, especially for goodwill-heavy purchases.
- Lease term and options can make or break the deal.
- Your own contribution and any property security widen the options.
Buying a business is two finance conversations wrapped into one. The lender needs to understand the business you’re buying — its profits, its lease, its assets — and it needs to understand you, the person who’ll be running it. A good call covers both, and a well-prepared buyer can make that call surprisingly productive.
What will the specialist ask about the purchase?
- What’s the business, and what’s the price?
- What’s included? Stock, plant and equipment, vehicles, fit-out, goodwill, intellectual property.
- What’s the settlement date, and is there a finance clause?
- How has the business performed? Revenue and profit over recent years, and the trend.
- What’s the lease? Term remaining, options, rent, and whether the landlord will consent to the transfer.
- What are you contributing? Cash, equity in property, or both.
What will they ask about you?
- What’s your experience in this industry?
- Will key staff or the seller stay on for a handover?
- What are your personal assets and debts? Especially if a personal guarantee or property security is involved.
- How will you run it day to day?
These aren’t hurdles for the sake of it. A café bought by a chef with fifteen years in hospitality is a different risk from the same café bought by someone who’s never pulled a shot.
What should I have ready?
| Have ready | Why |
|---|---|
| Information memorandum or sale summary | The basic facts of the deal |
| Seller’s financial statements and tax returns | The business’s documented performance |
| Recent BAS for the business, if provided | Cross-checks turnover |
| Lease and any landlord correspondence | Term and transfer consent |
| List of included assets | Shows what could support the loan |
| Contract of sale, or draft | Price, settlement date, finance clause |
| Your own contribution and property details | Widens the options |
| A short summary of your experience | Helps the specialist frame the application |
The call-prep tool builds this checklist for your amount and state.
Ready with the deal documents? Request your business purchase call-back.
What due diligence matters for finance?
business.gov.au’s guidance on buying an existing business lists the essentials. Several of them affect finance directly:
- Financial records for the past three to five years — tax filings, activity statements, profit and loss, balance sheets and cash flow.
- Licences and permits — confirming the business can legally operate under new ownership.
- Lease agreements and landlord consent — a short lease is one of the most common reasons a purchase struggles to get funded.
- Equipment and fixtures — condition and ownership.
- Outstanding debts and security — including a search of the Personal Property Securities Register for any security registered over business assets.
That last one catches buyers out. If equipment you’re buying is subject to someone else’s registered security interest, it needs to be dealt with at settlement. A PPSR search is a small cost for a lot of certainty.
Why is goodwill harder to fund?
Because it can’t be sold separately if things go wrong. Equipment, vehicles and stock have a resale value; property has a market. Goodwill — the value of the business’s reputation, customers and location — depends on the business continuing to trade.
That’s why purchases that are mostly goodwill often need one or more of these:
- a larger buyer contribution
- property security, which supports business loans from $20,000 to $5,000,000
- a vendor finance arrangement, where the seller accepts part of the price over time
- a strong track record from the buyer in the same industry
Ask the specialist which combination fits your deal.
What should I ask before committing?
- What conditions will an approval carry, and can they be met before my finance clause expires?
- What security and guarantees would be required?
- What’s the total cost in dollars, including establishment and legal fees?
- If the business performs better than forecast, can I repay early?
- What happens if settlement is delayed?
Our page on personal guarantees and security covers the security questions in more depth. If you’re planning a refit after buying, see the fit-out call prep too.
How long does business purchase finance usually take?
Longer than most other business lending, and it’s worth planning for. A purchase involves reviewing the seller’s financials, the lease, the assets and your own position, and sometimes a valuation of property offered as security. Delays usually come from missing information rather than the lender: the seller’s accountant slow to provide statements, the landlord slow to confirm the lease transfer, or a PPSR registration that needs to be sorted before settlement.
A few things keep it moving:
- Ask the seller for financials early, ideally before you sign.
- Talk to the landlord early about consent to assign the lease or grant a new one.
- Search the PPSR over key equipment as soon as you have serial numbers.
- Set a realistic finance date in the contract, based on what the specialist tells you on the first call.
- Keep your own documents ready — ID, bank statements, details of any property you’re offering.
If the vendor offers to stay on for a handover period, get the terms in writing. It reassures lenders as much as it helps you.
Ready to talk about the purchase?
A business purchase is a big step, and the first call should leave you clear on what’s fundable and what it will take. Asking involves no credit check, your details stay with one team instead of being passed to every lender in town, and a real specialist reads your situation before ringing.
Please enter the purchase price, your contribution, your state and any property you own accurately — it’s how we match you properly first time. Choose a window and we’ll call.
Frequently asked questions
How much of a business purchase can be financed?
It depends on the business's profits, the assets included, your contribution and any property you can offer. Goodwill is harder to lend against than equipment or property, so purchases that are mostly goodwill often need more security or a larger contribution.
What due diligence should I do before calling?
business.gov.au recommends reviewing several years of financial records, checking licences and permits, reviewing the lease, checking equipment, and searching the PPSR for any registered security over business assets.
Does my contract need a finance clause?
Ask your solicitor or conveyancer. A finance clause with a realistic date gives you time to secure funding, and the specialist can tell you what timeframe is realistic for your situation.
Can I buy a business with no industry experience?
It's possible, but expect more questions. Transferable skills, a strong manager staying on, a franchise system or a vendor handover period can all help.
What if the seller's figures are mostly cash takings?
Lenders rely on documented income, usually tax returns and bank statements. Figures that don't appear in the tax returns generally can't be relied on for lending.