Buying a business is one of the most significant financial decisions you will make. Whether you are acquiring an established operation, buying a franchise, buying out a partner, or taking over a family business; securing the right finance structure from the outset can be the difference between a deal that works and one which doesn't.

At Imperium Finance, we work with buyers across Brisbane and Queensland to arrange business acquisition finance, navigating the lenders, the paperwork, and the complexity so you can focus on the opportunity in front of you.

Business acquisition finance is a loan arranged specifically to fund the purchase of an existing business or a franchise. Different from a standard business loan, the lender will consider the purchasers equity or cash contribution, and their experience as well as the financial health, cash flow history, and risk profile of the business being acquired.

Funding varies from lender to lender, and terms will rely greatly on the strength of the application as a whole. Very generally, the buyer will need to contribute roughly 50% in either cash or equity with the remaining balance secured by way of a General Security Agreement (GSA) over the business assets and personal director's guarantees.

Where a buyer can blend cash with property equity, a fully secured loan structure may be achievable, often on better terms.

Lenders want to see at least two to three years of financial statements for the business being acquired. They are looking for consistent revenue, demonstrable cash flow, and a clear ability to service the debt from business income.

Your experience as it relates to the business being purchased, financial history, existing assets, and any property security you can offer will all be assessed. A strong personal balance sheet significantly improves your borrowing options.

Some industries are viewed more favourably than others by lenders due to economic resilience, and consumer demand. Businesses with recurring revenue, established client bases, and tangible assets tend to attract better terms than those reliant on a single key person or with highly variable income.

Any existing lease terms are also considered, as the business loan term can be determined by the remaining lease term and any options.

Business acquisition finance is not an off-the-shelf product. Every deal is different, and the right lender for one transaction may be entirely wrong for another. Our process is designed to find the right fit for your specific situation.

Understanding the Deal

We start by understanding the business you are acquiring and its financial history, your relevant experience, your financial position, and your goals. This gives us everything we need to begin research and identify the most suitable lenders.

Preparing a Strong Application

A well-prepared application makes a material difference to approval outcomes and loan terms. We work with you and where relevant, your accountant, to present your application in the strongest possible light.

Accessing the Right Lenders

Not all lenders are active in the business acquisition space, and those that are have very different appetites and policies. We know which lenders are the best fit for deals of your size and structure, saving you time and protecting your credit file from unnecessary applications.

Managing the Process to Settlement

From application through to settlement, we manage the process and keep all parties informed so nothing falls through the cracks at a critical stage of your transaction.

If you have identified a business you want to buy, we would love to work with you. Book a complimentary consultation with our finance team today.