Buying a business? Know what you can borrow before you sign.
- Indicative funding position within 2 business days, settlement typically 1 to 8 weeks
- Loans from $50K to $10M
- First-time buyers, operators expanding, and management buy-outs
- Goodwill, plant and equipment, freehold, and share purchases all considered
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), with limited no-doc for short terms
Buying a business is one of the harder things to finance, because what you are buying is largely intangible. Lenders can take security over property and equipment, but goodwill, a customer list, and a set of contracts are much harder to lend against. That is why the structure of an acquisition matters as much as the price: how much is vendor-funded, what security is available, and whether the earnings will genuinely support the debt. Settled With Joe works across bank, non-bank, and specialist lenders who fund these deals, and Joseph Farhat and his team will tell you honestly and quickly what is achievable for your situation.
Who we can help access finance
- Buyers acquiring an established business with a trading history and verifiable earnings.
- Existing owners buying out a departing partner or shareholder.
- Management teams funding a buyout of the business they already run.
- Business owners making a bolt-on acquisition of a competitor or a complementary operation.
- Buyers of a franchise, where lender appetite depends heavily on the brand and the franchisor.
- Purchasers acquiring a business together with its freehold premises, which usually improves the funding significantly.
- Self-employed buyers with property equity but income documentation that does not present neatly.
- Buyers under a fixed settlement date in a share or asset sale agreement.
How Business Acquisition Finance Works
Most acquisitions are funded from several sources rather than one loan. A typical structure combines your own contribution, a lender advance secured against available assets, and often a vendor finance component where part of the price is paid over time from future earnings. Where the business owns its premises, the property can carry a large share of the funding at a much lower rate, which is why business-plus-freehold deals are easier to finance than goodwill-only ones. Lenders generally advance against a multiple of sustainable earnings rather than the asking price. Joseph Farhat and his team review the target, the structure, and your security position, match the scenario to the right lender from the 90+ panel, and manage the application through to settlement.
What Lenders Assess for Business Acquisition Finance
Sustainable earnings
lenders assess the business's underlying profit (earnings before interest, tax, depreciation and amortisation, adjusted for one-offs) over several years, not the best year or the vendor’s forecast, and lend against a multiple of it.
What is actually being bought
property and equipment can be lent against directly. Goodwill and customer lists cannot, which is the constraint on most deals.
Your experience
relevant industry and management experience carries real weight, particularly for a first-time buyer entering an unfamiliar sector.
Security available
property equity, whether in the business premises or your own, is usually what makes an acquisition fundable at a sensible rate.
Customer concentration
a business where one client is most of the revenue is a materially riskier proposition than one with a spread.
Transition risk
how dependent the earnings are on the departing owner, and what handover or restraint arrangements are in place.
Vendor finance
a vendor willing to leave part of the price in the business signals confidence and reduces what the lender has to fund.
Deal structure
whether it is a share sale or an asset sale changes the liabilities you inherit and the way lenders assess it.
The Business Acquisition Finance Process: What to Expect
- Talk to Joseph Farhat and his team early, ideally before you sign. You will get an honest read on what is fundable and what deposit or security is likely to be required, which is worth knowing before you negotiate.
- Provide the basics: the target’s financials for the last three years, the sale contract or heads of agreement, details of what is being acquired, and your own position and security.
- We match your scenario to the lenders on the panel most likely to fund the structure. Acquisition appetite varies widely by industry and by what is being bought, so this step decides the outcome more than on most products.
- The lender assesses the file and issues an approval setting out the rate, term, security, and any conditions, which often include restraint of trade and handover requirements. We go through it with you before you sign anything.
- Settlement takes place alongside the sale, the funds are paid to the vendor, and the facility begins. We stay in contact through the first year, which is when most acquisition borrowers want someone to call.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | Property security usually required | $100K to $10M | 3 to 15 years | 4 to 8 weeks |
| Non-Bank Lenders | From ~11% p.a. | Business assets, or property where available | $50K to $5M | 1 to 5 years | 1 to 3 weeks |
| Private Finance | From ~1.2% per month | Property security | $250K to $10M | 3 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for business acquisition finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to settlement.
Talk to us before you sign
what is fundable shapes the terms worth negotiating, including the vendor finance component and the settlement timeline. The earlier we see the deal, the more room there is to shape it.
Goodwill is the hard part
lenders fund assets, not intangibles, and knowing how much of the price is genuinely lendable before you commit changes the deal you do.
Structure decides the outcome
the same business at the same price can be fundable or not depending on how the deal is put together.
One conversation, not five applications
acquisition appetite varies sharply by industry, each application takes time inside a due diligence period, and each credit enquiry is recorded on your file.
90+ lenders on one panel
bank, non-bank, and specialist, so a property-backed acquisition can go to a bank at a sharper rate and a goodwill-heavy one still has options.
Managed end to end
Joseph Farhat and his team package the target’s financials and your position in the form lenders actually want to see.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if you are inside a due diligence period, tell us early and we will tell you what is realistically achievable.
Frequently asked questions
What is business acquisition finance?
Business acquisition finance is funding used to buy an established business, buy out a partner or shareholder, or fund a management buyout. It is rarely a single loan. Most acquisitions combine your own contribution, a lender advance secured against whatever tangible assets are available, and often a vendor finance component paid from future earnings. Lenders advance against a multiple of sustainable earnings rather than against the asking price.
How much deposit do I need to buy a business?
For a goodwill-heavy business with limited tangible assets, expect to contribute 30% to 50% of the price, because there is little for the lender to take security over. Where property equity is available, whether the business premises or your own, that figure can fall substantially and the rate improves. Where the acquisition includes the freehold, funding can look much more like a commercial property loan. Joseph Farhat and his team will tell you what lenders are likely to fund before you negotiate.
Can I buy a business with no property security?
It is harder, but it happens. Some non-bank lenders will fund an acquisition against business assets, debtors, and cash flow alone where earnings are strong and consistent. Expect a higher rate, a shorter term, a larger contribution from you, and a director guarantee. A meaningful vendor finance component often makes the difference, because it reduces what the lender has to advance and signals the vendor believes the earnings will hold.
What is vendor finance and how does it help?
Vendor finance is where the seller leaves part of the purchase price in the business, repaid to them over an agreed period out of future earnings. It reduces the amount you need to borrow, and lenders view it favourably because it keeps the vendor invested in a smooth handover. It is common on small business sales. Raise it with your accountant or adviser early, rather than after the price is agreed.
How fast can business acquisition finance be arranged?
Non-bank lenders can move in 1 to 3 weeks where the file is well prepared. Bank acquisition lending commonly takes 4 to 8 weeks, because the lender reviews several years of the target’s financials alongside your position. If you are working inside a due diligence period or to a settlement date in the sale contract, tell us at the first conversation so the timeline can be built backwards from it.
Can I get business acquisition finance with low-doc or no-doc?
The target’s financials are generally required regardless, because the lender is assessing the earnings being purchased. What can flex is the documentation of your own position: several lenders on the panel will assess a buyer on bank statements or an accountant declaration rather than full personal financials, particularly where property security is available. Genuine no-doc acquisition lending is rare and short-term. Joseph Farhat and his team will tell you what each lender requires.
Do you work with borrowers with bad credit?
Yes, we do. Defaults, past arrears, or a mark on your personal file do not automatically rule you out, and it is not something we will make you feel awkward about. Plenty of capable operators carry a listing from a period that has nothing to do with their ability to run the business they are buying. Acquisition lending does weigh the credit file more heavily than a purely asset-backed product, so we will be straight with you about the impact, and several lenders on our panel will price for the risk rather than decline it, particularly where security is available. Telling us early lets us approach the right lender first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
What does business acquisition finance cost?
Bank acquisition lending secured against property starts from around 7.5% per annum over 3 to 15 years. Non-bank facilities generally start from around 11% per annum over shorter terms. Expect establishment fees, legal costs, and in most cases valuation costs on any property security. Because acquisitions are usually funded from several sources at different rates, the blended cost is what matters. Joseph Farhat and his team will set out the full structure and total cost before you proceed.
Why work with Settled With Joe to finance your business acquisition?
Because you get one conversation instead of a round of applications, and because on this product an early conversation is most useful before you sign rather than after. Most of the people we help are self-employed business owners, company directors, and operators buying a competitor, buying out a partner, or taking over the business they already manage, often inside a due diligence window with a settlement date attached. Those situations are not unusual to us and there is no judgement in the conversation. What matters is the sustainable earnings, what tangible assets come with the deal, and how the purchase is structured. Lender appetite for acquisitions swings hard by industry and by how much of the price is goodwill, and knowing what is genuinely fundable changes the deal you negotiate. Our panel covers 90+ bank, non-bank, and specialist lenders. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistically achievable in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with business acquisition finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges business acquisition finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Lender appetite varies by industry more than by location on this product, though regional security can attract a lower loan-to-value ratio (LVR), the loan as a share of the property's value. Joseph Farhat and his team will identify which lenders on the panel are the best fit for your acquisition and timeframe.
