FAQs

A number of different loan types may be required to fund different elements of the purchase. Asset acquisition funding can suit vehicles, plant, equipment and other assets. Secured and Unsecured Business Loans may be required for goodwill, stock, supplies and non-asset items such as digital resources.

Lenders assess the financials of an existing operation as part of the finance approval process to assess viability. The industry would not impact the type of finance but may impact interest rates, collateral and possibly loan conditions.

Goodwill may be financed with a Secured Business Loan where the buyer provides assets or property as security. Where suitable collateral is not available, an Unsecured Business Loan may suit.

Loans for hospitality businesses may include a number of individual loans such as one for the equipment, for the goodwill, and others for non-asset inclusions.

Interest rates on commercial loans are subject to lender assessment of the applicant. Rates vary with different credit facilities which may be required to finance a business purchase.

Each business acquisition is addressed individually by lenders to ascertain the most suitable financing packaging. One finance arrangement may be possible or individual loans for the different inclusions may be required.

Collateral requirements will depend on the type of loan and purpose. Where assets of an existing business are being financed, the assets may be accepted as collateral. Where a loan to purchase non-asset items such as goodwill is required, the buyer may be required to provide property, assets or financial holdings as security.

When applying for commercial finance as a self-employed operator, personal financial documents are required as part of the application process. The credit rating will be assessed by lenders. Approval is subject to meeting lender guidelines.

Where existing truck leases are included in a business purchase, the seller would need to finalise those arrangements and the buyer apply for new financing. Transferring finance arrangements from one party to another may require discussion with a finance broker.

Some inclusions in a business acquisition may be financed with either secured or unsecured funding products.