Business Acquisition Loans: How to Finance Buying an Existing Business

You've found a business you want to buy. Maybe it's a café with a loyal following, an engineering firm with a full order book, or a gym that's already turning a profit. Now comes the harder part: working out how to actually pay for it.

Most guides to "business loans" assume you're borrowing to grow a business you already run. Buying one you don't own yet is a different situation entirely. The lender is assessing a business you have no track record with, and that changes what you'll need to prove — and how much you can borrow without putting up security.

Here's how acquisition finance actually works, based on real enquiries we see every week — from a $75,000 restaurant purchase through to seven-figure acquisitions.

What Is a Business Acquisition Loan?

A business acquisition loan is financing used specifically to buy an existing, trading business — not to fund one you already own. It can be structured as unsecured finance, a secured loan backed by property or another asset, or a mix of both. Which path fits depends mainly on how much you're borrowing and what security you can offer.

That's the first thing worth unlearning if you've read general business loan content before applying this to a purchase: the lender isn't just assessing you. They're assessing the business you're about to own, using its own financials, before you've had a single day running it yourself. This is why acquisition finance has its own patterns — and why the answers below don't always match the generic advice you'll find elsewhere.

Can I Get a Business Loan to Buy an Existing Business With No Deposit?

It depends on the size of the deal and your own financial position. Smaller acquisitions — generally under $150,000 — can sometimes be funded through unsecured finance with no traditional deposit, provided your trading history and serviceability support it. Larger purchases usually need security, a vendor finance component, or an equity contribution from you, since the lender hasn't seen you run this specific business yet.

That $150,000 figure isn't arbitrary. It's the same threshold that applies across our standard unsecured business loan products, where a PPSR charge typically comes into play once you cross it. Acquisition finance follows the same underlying logic — it just applies it to a business you're about to own rather than one you already do.

What Collateral Do I Need to Provide to Buy a Business?

For smaller acquisitions — especially if you already run a business with a solid trading history — you often don't need collateral beyond a personal guarantee. Above roughly $150,000, most lenders will want real estate security or another specific asset as part of the deal.

This is where a lot of first-time buyers get a surprise. You can be a strong operator with excellent personal credit, and still find that the size of the acquisition — not your own track record — is what determines whether security is required. The deal size drives the structure more than your personal financial strength does. Worth knowing that before you fall in love with a business that's priced beyond what your available security can support.

Can I Get Unsecured Finance to Buy a Café or Restaurant?

Yes — unsecured finance is a genuine path for buying a café or restaurant, particularly for smaller-to-mid-sized purchases. Lenders look closely at the target business's own financials — revenue trends, lease terms, and profitability — regardless of industry, since they're ultimately assessing the business being bought, not just you. How much you can access unsecured depends on both your trading history and the target's numbers.

We've seen this work in practice at both ends of that range: a $75,000–$100,000 restaurant purchase funded unsecured, and a café acquisition where the eligibility and amount took a bit more discussion before landing on the right structure. Hospitality isn't automatically treated as higher risk — a business with solid, provable numbers is a business with solid, provable numbers, whatever's on the menu.

If you're partway through evaluating a hospitality purchase and want to know where your specific numbers land, talk to a specialist before you get too far into negotiations — it's a five-minute conversation that can save you from chasing a deal structure that was never going to get approved.

What Documents Does the Lender Need From the Business I'm Buying?

Beyond your own paperwork, lenders will usually want to see the target business's financials — typically two to three years of financial statements or tax returns, recent BAS lodgements, a copy of the sale contract, and sometimes a formal valuation or asset list. If there's a commercial lease involved, they'll also want the lease terms and how much time is left on it after settlement. [CONFIRM against actual lender panel requirements before publishing — this reflects standard acquisition-finance practice generally, not a confirmed Broc Finance policy list.]

This is often the part that catches buyers off guard. You've done your own homework — bank statements, ID, the basics. But a lender assessing an acquisition needs the seller's homework too, and getting that paperwork out of a seller mid-negotiation isn't always smooth. Ask for it early.

How Does the Acquisition Loan Process Differ From a Standard Business Loan?

The main difference is that lenders are assessing two businesses instead of one — your financial position and experience, plus the financials and stability of the business you're buying. That usually means more documentation and a slightly longer assessment, since the lender wants confidence that the business will keep performing under new ownership.

The broker process on your end stays the same. We gather details on both sides of the deal before shortlisting lenders, rather than you having to explain your situation five separate times to five separate banks.

Does the Amount You're Borrowing Change the Approach?

Real acquisition enquiries we handle span a wide range — everything from an $8,000 top-up on an existing facility through to a $1,000,000 purchase, across industries as different as smash repair, engineering, and specialty food production. The pattern holds regardless of industry: smaller, well-documented deals tend to move fastest through unsecured finance, while larger or higher-risk purchases lean toward secured structures, often with a PPSR charge or real estate security attached.

If you're not sure which side of that line your deal sits on, that's a completely normal place to be before your first conversation with us — most buyers aren't sure either, and it's exactly what the first call is for.

Ready to Work Out What Your Deal Actually Needs?

Buying an existing business is a genuinely different financing conversation from a standard business loan — the business you're about to own is doing as much of the talking as you are. The good news is that whether your deal lands closer to $75,000 or closer to $1,000,000, the same underlying logic applies: know your amount, know what security it calls for, and get the target business's paperwork moving early.

If you're currently evaluating a purchase and want a straight answer on how it's likely to be structured, talk to a specialist on 1300 253 041, or start your application if you're ready to move. We'll tell you early, and honestly, whether your deal needs unsecured business loan options, secured business finance, or a structure somewhere in between.