Best Loans to Buy a Business in Australia

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Buying a business is one of the most significant financial decisions an entrepreneur can make. Whether acquiring an established café, a manufacturing operation, or a thriving retail outlet, securing the right financing is crucial to making the deal happen and setting the venture up for long-term success. In Australia, business buyers have access to a diverse range of loan products, from traditional bank acquisition loans and government-backed programs to fintech solutions and creative seller financing arrangements.

Understanding which loan type aligns with a buyer’s financial profile, the nature of the business being purchased, and their timeline can mean the difference between securing favorable terms and overpaying for capital. With interest rates, eligibility criteria, and repayment structures varying widely across lenders, it’s essential to evaluate each option carefully. This guide explores the best loans to buy a business in Australia, breaking down eligibility, costs, benefits, and strategic considerations for each.

Top Loan Platforms For November 2025

1) Australian Loan Finder

Australian Loan Finder is an Australian-owned business finance provider helping local small businesses access fast, flexible, and transparent funding through partnerships with reputable Australian lenders. Unlike traditional banks or generic loan marketplaces, Australian Loan Finder offers a direct, streamlined approach to business finance—acting as your dedicated finance partner from application to funding. Businesses can apply online in just 2 minutes, with loans available from $5,000 to $500,000, and receive personalised funding options designed around their needs. For eligible borrowers, no upfront security is required on loans under $150,000, and decisions can be made within hours—with funds often available in as little as 24 to 72 hours.

With fixed, transparent pricing, loan terms between 3 months and 5 years, and flexible repayment schedules that align with your cash flow, Australian Loan Finder gives business owners the clarity and control they need to grow confidently. Whether you’re managing day-to-day operations or investing in expansion, Australian Loan Finder simplifies access to funding—so you can focus on what matters most: running your business.

2) Lumi

Introduction to Lumi

Lumi stands at the forefront of small business financing solutions in Australia, offering a robust platform that prioritizes flexibility and transparency.

With a commitment to empowering businesses, Lumi provides unsecured loans ranging from anywhere from $5,000 to $300,000, helping to simplify the lending process for entrepreneurs.

Lumi Business Loan Application Process

• Quick:Simple online application process to submit your information and the type of loan your after to get started
• Simple: Simply gather your ABN/ACN, driver’s license, and bank details and find out pretty quick if your approved
• Fast: Approval can come as fast as 2 hours, and funding can hit your account within the same business day

Features of Lumi Business Loans

• Loan Amount Flexibility: Borrowers can access loans ranging from $5,000 to $300,000, accommodating diverse business needs
• Speedy Application and Approval: Lumi’s emphasis on quick processing allows applicants to receive funds within the same business day, facilitating timely responses to business opportunities
• Transparent Fee Structure: Lumi sets itself apart with minimal fees, notably a 2.5% establishment fee, providing clarity and predictability for borrowers
• Unsecured Loans: With a focus on inclusivity, Lumi offers unsecured business loans, eliminating the need for collateral for amounts up to $300,000
• Flexible Repayment Options: Weekly repayment frequencies, principal and interest repayment types, and the option for extra repayments contribute to a borrower-friendly repayment structure
• Early Repayment Benefits: Lumi distinguishes itself by allowing borrowers to pay off their loans early without incurring penalties. Early payout options and discounts are available, with principal-only payouts accessible after 6 months
• Eligibility Criteria: Lumi caters to businesses that are at least six months old, with a minimum annual turnover of $50,000, establishing accessibility for a broad range of enterprises

3) Prospa

Overview of Prospa

Navigating the landscape of small business loans in Australia? Prospa is another solid contender in the market across both Australia and New Zealand. Prospa provides small business owners with a quick and simple way to obtain financing, and it has already assisted thousands of Australian small enterprises. Prospa received the Deloitte Tech Fast 50 in 2015, after increasing by 6071% in three years, making it Australia’s fastest growing technology firm and Asia’s third quickest. Prospa was a Telstra Business Awards finalist in 2015 and ranked 33rd globally as a leading innovator in KPMG’s Fintech 100.

How Prospa Small Business Loans Work

Prospa offers loans from $5,000 up to $500,000 for cash flow or growth. You can apply online in about 10 minutes and often get a decision the same day (with funds possible in 24 hours).

No upfront security is needed for loans under $150,000. Loan interest rates vary based on your business and are calculated upfront. This helps you to know the total cost before you borrow. Early repayment options are available to save on interest.

Benefits of Prospa Business Loan

Choosing Prospa for your business financing needs means opting for a partner who understands the nuances of small Australian businesses.

Simple Application Steps: Prospa ensures a straightforward application process that respects your time and urgency. With an online form that takes around 10 minutes, you’re on your way to financial support without unnecessary delays.

Flexible Loan Uses: Prospa allows you to utilize the loan for various business objectives, from buying supplies to expanding your team or renovating your workspace. Your business, your choices.

Variable Loan Durations: With loan periods ranging from 3 months to 3 years, Prospa caters to different business needs. Whether you want a short-term loan (boost) or a more extended financial support plan, Prospa offers flexibility.

Modular Payment Schedules: Prospa understands that one repayment schedule doesn’t fit all. You have the freedom to schedule repayments based on your business’s cash flow, choosing between weekly and daily payments.

Quick Approval and Funding: Prospa lives up to its promise of being swift. A 10-minute online application, coupled with approval possible within the hour depending on your scenario ensures you don’t miss out on capital.

Prospa’s business loans offer numerous advantages:

1. Streamlined application: The online form takes only 10 minutes to complete, respecting your time and urgency.
2. Versatile loan purposes: Use funds for various business objectives, including purchasing supplies, expanding your team, or renovating your workspace.
3. Flexible loan terms: Choose from loan periods ranging from 3 months to 3 years, tailored to your specific business needs.
4. Customisable repayment options: Schedule repayments based on your business’s cash flow, with weekly and daily payment options available.
5. Rapid approval process: Depending on your situation, approval is possible within an hour of application submission.

1. Traditional Bank Business Acquisition Loans

Traditional bank business acquisition loans remain the most established and widely used financing option for purchasing a business in Australia. Major institutions like the Commonwealth Bank, NAB, Westpac, and ANZ offer tailored products designed specifically for business acquisitions, providing significant borrowing capacity and structured repayment terms.

These loans are ideal for buyers with strong financial histories, substantial deposits, and a well-documented business plan. They typically offer the most competitive interest rates when secured against assets, making them attractive for larger acquisitions where long-term financing is needed.

Eligibility Requirements

Securing a traditional bank loan for a business purchase requires meeting rigorous eligibility criteria. Lenders assess both the buyer’s personal financial standing and the viability of the business being acquired.

Key requirements include:

• Credit history: A strong personal credit score is essential, typically requiring an Equifax score of 680 or higher. Lenders review credit reports for defaults, late payments, and existing debts.
• ABN and GST registration: Buyers must have an Australian Business Number, and GST registration is required if the business’s annual turnover exceeds $75,000.
• Financial documentation: Banks usually require at least three years of financial statements for the target business, including profit and loss statements, balance sheets, and tax returns.
• Deposit: A substantial upfront deposit is typically expected, typically ranging from 10% to 20% of the purchase price. Larger deposits can improve approval odds and secure better interest rates.
• Business plan: A comprehensive business plan demonstrating how the buyer intends to operate and grow the business is often mandatory, particularly for larger loan amounts.

Banks also conduct thorough due diligence on the business itself, examining its cash flow, profitability trends, customer base, and market position. If the business has inconsistent revenue or declining performance, approval may be difficult, or the lender may require additional security.

Typical Interest Rates and Terms

Traditional bank business acquisition loans offer competitive rates, especially when secured against business or personal assets.

Secured loans, backed by collateral such as commercial property, equipment, or other assets, typically sit at the lower end of this range. Unsecured loans, which carry higher risk for lenders, attract rates typically closer to 12% to 20% and often have shorter repayment terms.

Loan amounts from major banks typically range from $250,000 to $5 million, though some lenders may go higher for premium borrowers or large-scale acquisitions. Repayment terms can sometimes be flexible, generally spanning 5 to 20 years, allowing buyers to manage cash flow while investing in business growth.

Many bank loans feature variable interest rates linked to the Reserve Bank of Australia’s cash rate, meaning repayments can fluctuate as monetary policy changes. Fixed-rate options are available but may come with less flexibility or higher upfront costs.

Traditional bank loans are best suited for buyers who have time to navigate a detailed application process, meet strict eligibility standards, and can provide substantial documentation and collateral. While approval can take several weeks, the long-term cost savings and borrowing power make this option a cornerstone of business acquisition financing in Australia.

2. SBA-Style Small Business Loans (Australian Equivalent)

While Australia does not have a direct equivalent to the U.S. Small Business Administration (SBA) loan program, there are government-backed initiatives and support schemes designed to assist small business owners and entrepreneurs in accessing capital. These programs aim to reduce the barriers to entry for borrowers who may not meet the stringent requirements of traditional banks, particularly in priority sectors or underserved regions.

Government-backed loans and grants are especially valuable for buyers targeting businesses in industries aligned with national economic priorities, such as agriculture, regional development, innovation, and export growth. Although these programs don’t always offer the same level of standardization or accessibility as SBA loans in the U.S., they can provide competitive terms and additional support that makes business acquisition more feasible.

Government-Backed Loan Programs

Australia’s government-backed business financing options are administered through several channels, primarily via business.gov.au (the federal government’s central business support portal) and the National Reconstruction Fund Corporation (NRFC), which was established to support investment in strategic industries.

Key features of government-backed loan programs include:

• Competitive interest rates: Government programs often negotiate lower rates or offer subsidized lending to make financing more affordable for qualifying businesses.
• Flexible eligibility: While still requiring a solid business plan and financial documentation, these programs may be more lenient about credit history or deposit requirements compared to traditional banks.
• Sector-specific support: Many government loans target industries like agriculture, manufacturing, clean energy, healthcare, and regional enterprises. Buyers acquiring businesses in these sectors may have better access to favorable terms.
• Grants and co-funding: Plus to loans, some programs offer grants or co-investment arrangements, reducing the buyer’s total debt burden.
• Longer approval timelines: Government loan programs can involve more complex application processes and longer approval periods, often requiring detailed proposals and alignment with policy objectives.

Other initiatives include state-based programs, such as those offered by New South Wales Treasury or Development Victoria, which provide tailored financing and advisory services for business buyers in their jurisdictions. Also, the Export Finance Australia (EFA) program supports businesses involved in export activities, offering financing solutions that can be useful for acquiring export-oriented businesses.

Buyers interested in government-backed loans should begin by consulting business.gov.au to identify relevant programs, eligibility criteria, and application processes. Engaging with a business advisor or accountant familiar with government funding can also streamline the process and improve the chances of approval.

While these programs may not be as fast or straightforward as commercial fintech lenders, they can offer significant long-term value, especially for buyers who qualify for grants or subsidized rates. For businesses in targeted sectors or regional areas, government-backed financing can be a game-changer.

3. Commercial Equipment Finance for Business Purchases

Commercial equipment finance is a specialized loan product that allows buyers to fund the purchase of business assets, such as machinery, vehicles, technology, and other equipment, alongside or as part of a business acquisition. This type of financing is particularly relevant when the business being purchased has significant tangible assets that can serve as collateral.

Equipment finance is widely used across industries like hospitality, healthcare, industrial, transport, and trades, where the operational value of physical assets is central to the business model. By securing the loan against the equipment itself, buyers can often access lower interest rates, reduced deposit requirements, and more flexible approval criteria compared to unsecured business loans.

When This Option Works Best

Commercial equipment finance is best suited for business acquisitions where the purchase includes substantial plant, machinery, vehicles, or other high-value equipment. Here’s when this option shines:

• Asset-heavy businesses: If the business being acquired relies heavily on equipment, think food trucks, dental practices, construction companies, or logistics operations, equipment finance can cover a significant portion of the purchase price.
• Lower deposit requirements: Because the equipment itself acts as security, lenders may require a smaller upfront deposit (often 10% to 20% of the asset value, or even less in some cases).
• Improved cash flow management: Equipment finance typically structures repayments to align with the useful life of the asset, helping buyers manage cash flow more effectively. For example, a loan for commercial kitchen equipment might have a 5-year term, matching the expected depreciation period.
• Tax benefits: In Australia, equipment finance can offer tax advantages. Buyers may be able to claim depreciation on the equipment and deduct interest payments as a business expense, reducing taxable income.
• Fast approval: Equipment finance applications are often simpler and faster than traditional business acquisition loans, especially when the equipment’s value is easy to assess.

But, it’s important to note that equipment finance typically covers only the value of the tangible assets, not goodwill, intellectual property, or other intangible elements of the business. Buyers may need to combine equipment finance with other loan products to cover the full purchase price.

Interest rates for equipment finance are generally competitive, often ranging from 6% to 12% per annum depending on the lender, the borrower’s credit profile, and the type of equipment. Terms can vary from 2 to 7 years, with longer terms available for high-value or durable assets like heavy machinery.

When evaluating equipment finance, buyers should ensure the equipment being financed is essential to the business’s operations and has strong resale value. Lenders will assess the condition, age, and marketability of the assets before approving the loan. It’s also wise to work with a broker or financial advisor who specializes in equipment finance to secure the best terms and structure the deal effectively.

4. Online Alternative Lenders

Online alternative lenders, often referred to as fintech or neobank lenders, have transformed the business lending landscape in Australia over the past decade. Companies like Prospa, Moula, Capify, and NAB QuickBiz offer streamlined, tech-driven loan products designed for speed and convenience, making them a popular choice for business buyers who need capital quickly or who may not meet traditional bank criteria.

These lenders leverage digital platforms, automated underwriting, and real-time data analysis to approve loans in as little as 24 hours to 7 days. While they provide unmatched speed and accessibility, they typically charge higher interest rates and fees compared to traditional banks, reflecting the increased risk and convenience they offer.

Speed vs. Cost Considerations

The primary trade-off with online alternative lenders is speed versus cost. Understanding this balance is critical for buyers deciding whether a fintech loan is the right choice for their acquisition.

Speed advantages:

• Rapid approval: Most alternative lenders can approve loans within 1 to 7 days, with some offering same-day decisions. This is significantly faster than traditional banks, which may take several weeks.
• Minimal documentation: Fintech lenders often require less paperwork, relying instead on bank transaction data, accounting software integrations (like Xero or MYOB), and credit checks to assess eligibility.
• Flexible eligibility: Buyers with less-than-perfect credit or shorter trading histories may still qualify, as alternative lenders use broader risk models.
• Online process: The entire application, approval, and funding process is conducted online, reducing the need for in-person meetings or lengthy back-and-forth with loan officers.

Cost considerations:

• Higher interest rates: Interest rates from online lenders typically range from 12% to 20% per annum, significantly higher than secured bank loans. Some products use factor rates rather than traditional APRs, which can obscure the true cost.
• Shorter terms: Loan terms are generally shorter, maxing out at around 3 to 5 years. This means higher monthly repayments, which can strain cash flow, especially in the early stages of business ownership.
• Fees and charges: Alternative lenders may impose origination fees, early repayment penalties, or monthly service charges that add to the total cost.
• Lower borrowing limits: Loan amounts from fintechs typically cap at around $300,000 to $500,000, which may be insufficient for larger acquisitions.

When to choose an alternative lender:

Online lenders are best suited for buyers who need capital urgently, perhaps to close a deal quickly or capitalize on a time-sensitive opportunity. They’re also a good fit for buyers with strong cash flow who can handle higher repayments and plan to refinance with a traditional lender once the business is established.

Conversely, if the buyer has time to prepare a thorough application and can meet bank eligibility criteria, the long-term savings from a lower-rate traditional loan often outweigh the convenience of a fintech product.

Buyers should carefully compare total repayment amounts, not just monthly payments or advertised rates. Using a loan calculator and consulting with a financial advisor can help clarify the true cost and determine whether the speed premium is worth paying.

5. Vendor Finance or Seller Financing

Vendor finance, also known as seller financing, is a flexible and often creative way to fund a business acquisition. In this arrangement, the seller agrees to finance part or all of the purchase price, allowing the buyer to pay over time rather than securing the full amount upfront through a bank or lender.

This option can be particularly attractive when traditional financing is difficult to obtain, when the buyer and seller have a strong relationship, or when the seller is motivated to close the deal quickly. Vendor finance can also bridge funding gaps, especially if a lender will only cover a portion of the purchase price.

Negotiating Terms with the Seller

The success of a vendor finance arrangement hinges on clear, mutually beneficial negotiation. Because there’s no standardized structure, buyers and sellers have significant flexibility, but also the responsibility to define terms that protect both parties.

Key elements to negotiate:

• Loan amount and deposit: The seller may agree to finance 50% to 100% of the purchase price, though 30% to 70% is more common. The buyer typically provides a deposit or down payment to demonstrate commitment and reduce the seller’s risk.
• Interest rate: Vendor finance interest rates are negotiable and often range from 6% to 12%, depending on the seller’s expectations, the buyer’s creditworthiness, and prevailing market rates. Some sellers may offer interest-free periods or below-market rates to help the sale.
• Repayment schedule: Buyers and sellers can structure repayments as monthly installments, quarterly payments, or even balloon payments at the end of the term. The schedule should align with the business’s cash flow to avoid straining operations.
• Term length: Vendor finance terms typically range from 2 to 10 years. Longer terms reduce monthly payments but increase total interest paid.
• Security and collateral: Sellers often retain a security interest in the business or its assets until the loan is fully repaid. This protects the seller if the buyer defaults but can limit the buyer’s ability to secure additional financing or sell assets.
• Default provisions: Clear terms should outline what happens if the buyer misses payments, such as penalties, repossession rights, or renegotiation processes.
• Exit clauses: Buyers may negotiate the right to refinance or pay off the loan early without penalty, especially if they plan to secure bank financing once the business is more established.

Advantages for buyers:

• Easier approval process with less documentation and credit scrutiny
• Potential for lower or flexible interest rates
• Faster closing, as there’s no need to wait for bank approval
• Demonstrates seller confidence in the business’s ongoing success

Advantages for sellers:

• Expands the pool of potential buyers
• Can command a higher sale price
• Generates ongoing income stream through interest payments
• May offer tax benefits by spreading capital gains over multiple years

Risks and considerations:

Buyers should ensure they can realistically meet repayment obligations, as defaulting could result in losing the business. It’s also critical to have a lawyer review any vendor finance agreement to ensure terms are fair and enforceable. Sellers, meanwhile, should assess the buyer’s financial stability and consider requiring a personal guarantee or additional collateral.

Vendor finance works best when both parties are transparent, have aligned interests, and approach the negotiation as a partnership rather than an adversarial transaction. When structured thoughtfully, it can be a win-win solution that makes business ownership accessible while providing the seller with a secure return.

6. Commercial Property Loans for Business Acquisitions

Commercial property loans are a powerful financing tool when the business acquisition includes the purchase of the premises from which the business operates. Whether buying a café with its building, a medical practice with its clinic space, or a retail store with its storefront, combining the business and property purchase into a single loan can unlock significant financial advantages.

By using the commercial property as collateral, buyers can often access larger loan amounts, longer repayment terms, and lower interest rates compared to unsecured or pure business acquisition loans. This makes commercial property loans an attractive option for buyers looking to build long-term equity while securing both the business and its physical location.

Combining Property and Business Purchase

When a business acquisition includes real estate, lenders typically offer commercial property loans that can cover both the business goodwill and the property itself. This integrated approach simplifies financing and can improve the overall deal structure.

Key benefits of combining property and business purchase:

• Higher borrowing capacity: Commercial property loans can provide significantly more capital, often several million dollars, because the real estate serves as strong collateral. Lenders view property as a stable, appreciating asset that reduces their risk.
• Lower interest rates: Secured by property, these loans typically offer interest rates on the lower end of the spectrum, often between 5% and 9% per annum, depending on the property’s location, condition, and the borrower’s financial profile.
• Longer repayment terms: Commercial property loans can extend up to 20 to 30 years, reducing monthly repayments and improving cash flow for the buyer. This is especially valuable for capital-intensive businesses that need time to stabilize and grow.
• Equity building: Owning the property means the buyer builds equity over time, which can be leveraged for future expansion, refinancing, or other business opportunities. It also eliminates the risk of lease termination or rent increases.
• Tax advantages: Property ownership can offer tax deductions for mortgage interest, depreciation on the building, and other property-related expenses, reducing the buyer’s overall tax burden.

Eligibility and considerations:

Securing a commercial property loan typically requires:

• A substantial deposit, usually 20% to 40% of the combined property and business value
• A strong credit history and demonstrated ability to service the loan
• A professional property valuation and business valuation
• Detailed financial projections showing how the business will generate sufficient income to cover loan repayments, operating costs, and property expenses

Lenders will also assess the property’s location, zoning, condition, and market value. Properties in high-demand areas or with strong commercial potential are more likely to secure favorable terms.

When this option works best:

Combining property and business purchase is ideal for buyers who:

• Want long-term stability and control over their business premises
• Are acquiring businesses in industries where location is critical (hospitality, retail, healthcare)
• Have the financial capacity for a larger deposit and longer-term commitment
• Plan to hold and grow the business over many years, building wealth through both business income and property appreciation

But, buyers should be aware that this approach ties significant capital into a single asset and increases financial exposure. If the business struggles, the property is at risk. It’s essential to conduct thorough due diligence on both the business and the property, and to ensure the combined investment aligns with the buyer’s long-term goals and risk tolerance.

7. Peer-to-Peer (P2P) Business Lending Platforms

Peer-to-peer (P2P) business lending platforms represent an innovative and increasingly popular financing option for business acquisitions in Australia. These platforms connect business buyers directly with individual or institutional investors who are willing to fund loans in exchange for interest returns. By cutting out traditional financial intermediaries, P2P lenders can offer competitive rates, faster approvals, and more flexible terms, especially for borrowers with strong financials and compelling business plans.

P2P lending platforms operate entirely online, using technology to assess risk, match borrowers with investors, and manage loan servicing. While not as widely adopted as traditional banks or fintech lenders, P2P lending is carving out a niche for buyers who value transparency, speed, and the ability to present their story directly to potential backers.

How P2P lending works:

1. The buyer submits an application and business plan on the P2P platform.
2. The platform assesses creditworthiness, business viability, and risk profile.
3. Approved borrowers are listed on the platform, where investors can review the opportunity and choose to fund all or part of the loan.
4. Once fully funded, the loan is disbursed, and the buyer makes regular repayments to the platform, which distributes returns to investors.

Key advantages of P2P lending:

• Competitive rates: For strong applicants, P2P lending can offer interest rates comparable to or even lower than traditional banks, often in the range of 8% to 14% per annum.
• Faster approvals: The digital-first approach means approvals can happen within days to a couple of weeks, faster than many traditional lenders.
• Transparent process: Buyers can see how their loan is structured, who is funding it, and the exact terms, offering a level of transparency that traditional banks don’t always provide.
• Flexible criteria: P2P platforms may be more willing to consider non-traditional borrowers, such as those with shorter business histories or unique acquisition scenarios, as long as the business case is strong.
• Storytelling opportunity: Buyers can craft a compelling narrative around their acquisition, appealing to investors who are looking for more than just numbers, they want to back promising entrepreneurs and businesses.

Eligibility and requirements:

While P2P platforms are more flexible than banks, they still require:

• A solid business plan with clear financial projections
• Good personal and business credit history
• Demonstrated ability to service the loan
• Transparent communication and willingness to engage with investor questions

When P2P lending is a good fit:

P2P lending works best for buyers who:

• Have strong financials but may not meet all traditional bank criteria (e.g., shorter trading history, non-standard business models)
• Value speed and transparency
• Are comfortable with a digital-first, investor-backed financing model
• Are acquiring businesses in innovative or growth sectors that appeal to investors

Risks and limitations:

P2P lending is still relatively new in Australia, and not all platforms have the same level of investor participation or loan volume. Funding is not guaranteed, if investors don’t fully back the loan, it may not proceed. Also, some P2P loans may have variable rates or fees that can increase the total cost.

Buyers should research platforms carefully, compare terms with other financing options, and ensure the platform is reputable and regulated. Consulting with a financial advisor can help determine if P2P lending is the right strategic fit for the acquisition.

Conclusion

Buying a business in Australia is a multifaceted financial undertaking, and choosing the right loan can make or break the success of the acquisition. From traditional bank loans offering competitive rates and substantial borrowing power to innovative fintech lenders providing speed and convenience, the financing landscape is rich with options tailored to different buyer profiles, business types, and strategic goals.

Traditional bank business acquisition loans remain the gold standard for buyers with strong credit and time to navigate a detailed approval process, offering the best long-term value. Government-backed programs provide critical support for priority sectors and underserved buyers, while commercial equipment finance and property loans unlock opportunities for asset-heavy acquisitions. Online alternative lenders deliver unmatched speed for time-sensitive deals, and vendor finance opens doors when traditional funding falls short. Peer-to-peer platforms and SMSF loans round out the spectrum, catering to niche scenarios and strategic investors.

The key to securing the best loan lies in understanding your financial position, the nature of the business you’re acquiring, and your long-term objectives. Buyers should compare interest rates, terms, eligibility criteria, and total costs across multiple lenders, and consider working with a business broker, accountant, or financial advisor to navigate the complexities and negotiate favorable terms.

Eventually, the right financing solution is one that aligns with cash flow realities, minimizes risk, and positions the business, and the buyer, for sustainable growth and success. With careful planning, thorough due diligence, and the right loan in hand, buying a business in Australia can be a rewarding path to entrepreneurship and financial independence.

Note:  This is not financial advice and is just designed to provide general information. While we run our own checks and assess each company included on our website, we may not have covered all options. If you decide to apply for a product, you will interact directly with the vendor, not AGR Technology. AGR Technology suggests that you read the appropriate PDS or offer documents before accepting any financial product offer to assess whether the products are suitable for you. Target Market Determinations are available on the provider’s website.

AGR Technology may receive a commission on sales generated by partner links on this page, but this has no influence on our opinions or evaluations and is completely free of charge to you. While we make every attempt to keep our content up-to-date this should not be taken as financial advice, be sure to seek professional advice if required.

Factors considered when writing this article:

We set criteria for picking loan platforms to analyse, such as reputation, services offered, user base, regulatory compliance, types of loans available and the years of operation along with browsing the respective websites to validate they have licences and compliance to operate in Australia, as well as other things like KYC protocols and contacting the companies.

Checked each platform for user-friendly design interfaces to ensure platforms are straightforward for beginners and more experienced customers to grasp. We obtained information about each company by visiting their separate websites, signing up for an account, reading user reviews, and looking for recent news or events related to the platforms.

Frequently Asked Questions

What is the best loan to buy a business in Australia?

The best loan depends on your financial profile and business type. Traditional bank business acquisition loans offer competitive rates (6.29%–15%) and substantial borrowing capacity for buyers with strong credit and deposits. For faster approval, online alternative lenders provide convenience within 1–7 days, though at higher rates.

How much deposit do I need for a business acquisition loan in Australia?

Traditional banks typically require 10%–20% of the purchase price as a deposit, with larger deposits securing better interest rates. Commercial property loans may require 20%–40% when combining business and property purchases. Equipment finance often needs just 10%–20% of asset value.

What is vendor finance and how does it work for buying a business?

Vendor finance is when the seller finances part or all of the purchase price, allowing you to pay over time. Interest rates typically range from 6%–12% with terms of 2–10 years. It’s ideal when traditional financing is difficult or when sellers are motivated to close quickly.

How long does it take to get approved for a business acquisition loan?

Traditional bank loans typically take several weeks due to thorough due diligence requirements. Online alternative lenders like Prospa or Moula can approve loans in 24 hours to 7 days. Government-backed programs may take longer due to complex application processes and policy alignment requirements.

Source(s) cited:

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Just a moment… [Online]. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4271820 (Accessed: 25 October 2025).

[Online]. Available at: https://en.wikipedia.org/wiki/Peer-to-peer_lending (Accessed: 25 October 2025).

[Online]. Available at: https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst (Accessed: 25 October 2025).

Michael. “Funding Acquisitions: Loans for Buying Another Business in Australia” CMS 1.0, 15 Aug. 2025, loansguideaustralia.com.au/post/Funding-Acquisitions-Loans-for-Buying-Another-Business-in-Australia. Accessed 25 Oct. 2025.