Business acquisition loans: borrowing to buy a business

What is a business acquisition loan?

Finance to buy a business that is already trading: the goodwill, the stock, the equipment and sometimes the premises. Most lenders do not sell a separate "acquisition" product; they write their ordinary business loans for the purpose, usually as a term loan, and often secured by property or a general security agreement over the business's assets.

The difference from a startup loan is the evidence. An existing business has financial statements and a trading record the lender can test, which is why an established business is usually easier to finance than a new one. The difference from a franchise purchase is the system behind it; buying into a franchise has its own lenders and terms, covered in franchise finance.

What do lenders publish about buying a business?

Read on each lender's own page on 10 October 2026. Rates are the lenders' published starting rates, not offers; business loans have no mandatory comparison rate, and your rate depends on the security and the file.

How lenders assess a business purchase

Two things at once: the business and the buyer. CommBank's published list for the business is its profitability, cash flow, sales forecasts and growth potential, with the banker looking for healthy cash flow that shows the loan can be repaid. For the buyer, it asks about your qualifications for running a business, your personal assets and liabilities, and the equity or deposit you will put in.

Goodwill is the hard part. Property and equipment can be valued and sold; goodwill is worth what the business earns, so the more of the price that is goodwill, the more the lender relies on the cash flow, your own contribution and any security you can add, such as a home. That is why none of these lenders publishes a single deposit percentage: it moves with the mix of the purchase.

Documents to have ready

CommBank's published list, with the contract of sale added because every lender will ask for it:

• The current balance sheet of the business you are buying
• A full tax return for the business, less than two years old
• Details of your qualifications and experience for running the business
• Your personal assets and liabilities
• Details of the equity or deposit you will invest
• Profit and loss and cash flow forecasts for the first two years, depending on your experience and the business's profitability
• The contract of sale, and the lease if the premises are rented

Due diligence before you sign

business.gov.au's guide to buying an existing business recommends valuing the business, possibly with a professional valuation, then checking the licences and permits, whether the landlord will transfer the lease or you will need a new one, agreements with suppliers, the condition of the plant and equipment, the stock included, and any debts owing on assets registered on the Personal Property Securities Register. For the money side it says to examine the past three to five years of financial records. The same records are what a lender will read, so the work does double duty.

Ways to fund the purchase

• A secured term loan. The usual structure: a bank or non-bank term loan secured by property or the business's assets, over a term the lender allows (NAB publishes up to 30 years). See secured business loans.
• An unsecured business loan. Possible for smaller purchases, mainly where an established business is buying another and meets the lender's trading floors; dearer than secured lending. See unsecured business loans.
• Equipment finance for the assets. Financing the vehicles, plant or fit-out separately, secured by the items themselves, can reduce the amount the main loan has to cover. See equipment finance.
• Vendor finance. The seller lends part of the price and is repaid over time, often alongside a lender's loan; document it with your solicitor.
• Commercial property finance. If the premises are part of the deal, the property can be financed and secured on its own terms; see commercial property loans.

A business finance broker can compare these structures across the lenders on their panel and take the file to the lender whose policy fits the purchase. Most are paid a commission by the lender when the loan settles, and some commercial brokers also charge a fee, so ask how yours is paid.