Quick answer
Buying a business usually comes with a settlement date in the contract, and bank finance for business purchases can take weeks. A property-secured loan from $20,000 to $5,000,000 can fund the purchase price, stock at valuation and working capital quickly, with up to $5m possible within 24 to 48 hours. Many buyers then refinance to longer-term funding once the business has traded under them.
Key points
- Contracts have settlement dates; banks often take weeks
- Property security is the fastest way to fund a purchase
- Budget for stock at valuation and working capital, not just the price
- Refinance later once you have trading figures
- Use
- Purchase price, stock, working capital
- Security
- Property
- Range
- $20k – $5m
- Larger deals
- 24–48 hours possible
Why do business purchases need fast finance?
Because good businesses don’t sit on the market. Once you’ve agreed a price, the contract usually sets a settlement date and the seller expects you to meet it. A bank loan for a business purchase can involve detailed financial analysis of the business being bought, valuations and committee approvals, which takes time. If finance isn’t ready by settlement, you risk losing the deal, your deposit, or both.
A property-secured loan changes the timeline. Because the lender is relying on property rather than an in-depth analysis of the target business, it can move much faster. Up to $5m is possible within 24 to 48 hours.
What does buying a business actually cost?
More than the headline price. Budget for:
| Cost | Notes |
|---|---|
| Purchase price | Goodwill, plant and equipment |
| Stock at valuation | Usually counted and paid for at settlement |
| Transfer costs | Stamp duty may apply in some states; check with your adviser |
| Legal and accounting | Contract review and due diligence |
| Lease costs | Bond, assignment fees, guarantees |
| Working capital | Wages and bills before revenue settles in |
Running short on working capital in the first months is a common trap. A business that’s healthy under the old owner can still have a tight first quarter under a new one.
Which fast loan suits a business purchase?
- Debt-free property: a first mortgage can provide the most room.
- Home with an existing mortgage: a second mortgage leaves your home loan untouched.
- Waiting on a sale or bank approval: bridging finance covers settlement, repaid when the longer-term funding arrives.
How does the refinance-later strategy work?
Settle with fast funding, run the business for six to twelve months, then refinance to a bank once you have your own trading figures. Banks are far more comfortable lending to an owner with a track record in the business. The fast loan solves the timing problem; the refinance brings long-term costs down.
Illustrative example: a couple buy a bakery in a coastal town on the NSW South Coast for $480,000 plus stock. The settlement date is three weeks away and the bank wants six. They own a home with good equity. A second mortgage could fund settlement on time. After a year of trading, they plan to refinance to a bank business loan.
What due diligence should I still do?
Fast funding doesn’t replace careful buying. Get the seller’s financial statements and BAS checked by your accountant. Confirm the lease can be assigned and on what terms. Check whether staff entitlements transfer. Search ASIC registers for the selling entity and the PPSR for finance over equipment. Business.gov.au’s guide to buying an existing business is a good checklist.
What documents speed up approval?
- The signed contract of sale with the settlement date
- Your ID and the buying entity’s details (ABN, company or trust)
- Property details and mortgage statements for the security
- The business’s financials or BAS, if available
- Your plan for the first year and the exit, such as a refinance
Can I buy with a business partner?
Yes. Every borrower and every owner of any property being used as security must sign, so make sure your partner is available and fully on board. Different security from each partner can work too.
Settlement date looming? Start your 60-second enquiry today.
What should I check about the lease before settling?
For many businesses, the lease is as valuable as the goodwill. A cafe with two years left and no option to renew is worth far less than one with a long lease in a good location. Before settlement, confirm the lease can be assigned to you, what the landlord requires (often a guarantee, a bond and financial information), the remaining term and options, the rent and review method, and any make-good obligations at the end. Landlord consent can take time, so start early. A lender may also ask about the lease, because a business that could lose its premises is a riskier proposition.
Stock at valuation and adjustments
Many business sale contracts pay for stock separately, counted and valued at or just before settlement. The final figure can be higher than the estimate in the contract, especially in retail and hospitality. Build in a margin so a higher stock count doesn’t leave you short on the day. Adjustments for rent, utilities and staff entitlements can also move the final settlement figure, and your lawyer or accountant will calculate them before settlement.
See if you can settle on time
There’s no credit check when you first enquire, so it won’t affect your file. We don’t push your details out to a pile of lenders. A real person reads your enquiry, looks at the contract, your settlement date and your property, and calls with the fastest way to settle.
Please be accurate on the form, including the full amount needed and your state, so the first match is the right one. See if you qualify.
Frequently asked questions
Can I buy a business with a fast private loan?
Yes, usually with property security. It's often used when the settlement date is too close for a bank to approve in time.
Do I need the seller's financials?
They help, and you should have them for your own due diligence. With property security, the lender relies less on the business's history, which is why it can move faster.
What costs should I budget for?
The purchase price, stock at valuation, any stamp duty or transfer costs that apply, legal and accounting fees, and working capital for the first months.
Can I refinance later?
Yes. Many buyers use fast funding to settle, then refinance to a bank once the business has a track record under their ownership.
Can I buy a business with bad credit?
Possibly. Bad credit is considered case by case, and property security makes the biggest difference.
