Business Loan? Seize Opportunities Fast (2026)

Purchasing a business can be a monumental step in your entrepreneurial journey. However, one significant hurdle often stands in the way: financing. If you're wondering whether you can secure a business loan to buy a business in Australia, you're not alone. The good news is, there are various financing options available to help you achieve your goal. In this comprehensive guide, we'll explore the ins and outs of obtaining a business loan for purchasing a business, ensuring you have the knowledge and confidence to make informed decisions.

Understanding Business Loans for Buying a Business

When it comes to acquiring a business, a business loan is a common choice for many entrepreneurs. A business loan for buying a business is essentially a form of financing that allows you to purchase an existing business by borrowing a lump sum of money from a lender. The loan is then repaid over time with interest. This type of loan can be beneficial as it provides the necessary capital to acquire a business without depleting your personal savings or liquidating other assets.

There are various types of business loans available, including secured and unsecured loans, each with its own terms and conditions. A secured loan requires collateral, such as property or other assets, which reduces the lender's risk and can often result in lower interest rates. An unsecured loan, on the other hand, does not require collateral but may come with higher interest rates due to the increased risk for the lender.

Current Market Rates and Requirements

As of 2026, business loan interest rates in Australia typically range from 6.49% to 12%, depending on several factors such as the type of loan, the lender, and your credit profile. It's important to note that these rates are subject to change based on market conditions and individual lender policies.

To qualify for a business loan to buy a business, lenders generally look at several key factors:

• Your credit score and credit history
• Business financials, including profit and loss statements and balance sheets
• The business plan and projected financials of the business you intend to purchase
• Collateral availability (if applying for a secured loan)
• Your industry experience and management capability

Additionally, it's crucial to have a clear understanding of the business you wish to purchase, including its financial health, market position, and potential risks.

Steps to Secure a Business Loan

1. Assess Your Financial Position: Review your personal and business financials to understand your borrowing capacity.
2. Research Lenders: Explore different lenders, including banks and alternative lenders. Esteb and Co offers access to a panel of 83+ lenders, providing a wide range of options.
3. Prepare Necessary Documentation: Gather all required documentation, such as financial statements, business plans, and identification.
4. Apply for the Loan: Submit your application with the necessary documentation to your chosen lender.
5. Review Loan Offers: Compare loan offers carefully, considering interest rates, terms, and fees.
6. Finalise the Loan: Once you select the best offer, work with the lender to finalise the loan agreement and proceed with the purchase.

Expert Tips and Considerations

• Understand Your Business Needs: Clearly define why you want to purchase the business and how it fits into your long-term goals.
• Conduct Thorough Due Diligence: Analyse the financial health, customer base, and market standing of the business you're buying.
• Negotiate Terms: Don't hesitate to negotiate loan terms with lenders to secure the best deal possible.
• Plan for Additional Expenses: Consider additional costs such as legal fees, taxes, and potential working capital needs.
• Seek Professional Advice: Consult with financial advisors or business consultants to ensure you're making informed decisions.

Frequently Asked Questions

1. Can I get a business loan with bad credit? It may be more challenging, but some lenders offer loans to individuals with less-than-perfect credit, often at higher interest rates.
2. How much deposit do I need for a business loan? Typically, a deposit of 20%-30% of the purchase price is required, but this can vary depending on the lender.
3. Are there government grants available for buying a business? Yes, there are various government grants and incentives available, especially for small businesses, but these often have specific eligibility criteria.
4. How long does it take to get approved for a business loan? The approval process can take anywhere from a few days to several weeks, depending on the lender and the complexity of the loan application.
5. What if the business I want to buy is not profitable? Lenders will scrutinise the potential for profitability, and you may need to present a solid plan for turning around the business.
6. Can I use a business loan to buy a franchise? Yes, business loans can be used to purchase franchises, and some lenders even offer specialized franchise financing.
7. Do I need a business plan to get a loan? A detailed business plan is often essential as it demonstrates your strategy and potential for success to lenders.