The Finance to make your move
Business Acquisition Finance.
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Fund Your Next Big Move
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.
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What is Business Acquisition Finance?
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.
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What Lenders Look For
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.
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Our Approach: Finance to Fit the Deal
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.
Frequently Asked Questions
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Very generally, most lenders require approximately 50% of the purchase price to come from the buyer’s own funds, either cash, equity, or a combination of both. The remaining balance is typically 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. Every deal is different and we will give you a clear picture of what is required for your specific situation early in the process.
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Not always, but it significantly improves your options. Lenders who are active in this space will assess the full security package including the GSA over business assets, director’s guarantees, and any property offered. Where property equity is available, it often opens up more lenders and better terms. If you don’t currently own property, it’s worth having a conversation with us early so we can give you a realistic picture before you make an offer.
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Yes, but the franchise itself is important. Franchise acquisitions are assessed in a similar way to standard business purchases, though some lenders look favourably on established franchise systems due to their proven business model, brand recognition, and support structures. The financial history of the specific franchise location being acquired is still assessed, along with your relevant experience and financial position.
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Typically you will need two to three years of financial statements and tax returns for the business being acquired, your personal tax returns and financial statements, details of any property or assets being offered as security, and a copy of the sale contract or franchise agreement, as well as details of the existing lease agreement. Where a commercial property is included in the transaction, additional documentation will be required. We will provide a complete checklist once we understand the specifics of your deal.
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Yes. Lenders use the remaining lease term plus any options to decide the loan term. A business with a short lease and no options to renew represents a higher risk to a lender, as the business’s right to continue operating from its premises is not guaranteed. Where possible, having a secure lease with options in place before applying for finance will assist your application.
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Business acquisition loans are more complex than standard lending, and you should allow for up to 8 weeks or possibly more to settle. Timing depends on how quickly the business’s financial records can be provided, the completeness of your own documentation, and the lender’s assessment timeframes. We strongly recommend engaging us before you begin so that finance does not become a bottleneck at a critical stage of the transaction.
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Ideally beforehand. Understanding your borrowing profile before you make an offer means you can negotiate with confidence and set realistic parameters on deal size. If you have already found a business and are in negotiations, contact us immediately. The sooner we are involved, the better we can manage the process and meet any finance conditions in the contract.
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A General Security Agreement (GSA) is a legal document that gives a lender security over the assets of a business including equipment, stock, debtors, and intellectual property. It is registered on the Personal Property Securities Register (PPSR). For business acquisition lending, lenders typically require a GSA over the business being acquired as part of the overall security package, alongside any property security and director’s guarantees. Once the loan is fully repaid, the GSA is released and removed from the PPSR.
Ready to Finance Your Acquisition?
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.