Existing business buyers
Operators purchasing an established business, franchise or book of clients with clear revenue and customer history.
Business acquisition funding for purchase-related costs
A guide for SMEs considering business acquisition funding. SimplyFunded focuses on unsecured business funding and does not present this as a separate acquisition product.
Am I eligible?
You probably are, you just need:
- An active ABN or ACN
- 6+ months in business
- $5,000+ in monthly revenue
How acquisition costs relate to unsecured SME funding
SimplyFunded does not present business acquisition finance as a separate specialist product. This page explains acquisition-related considerations for SMEs researching funding options.
Some business purchase-related costs may overlap with unsecured business funding, but the request must still be practical, affordable and tied to a clear commercial outcome.
A strong application explains the buyer's trading history, current revenue, funding purpose and how repayments fit the existing business cash flow. Specialist acquisition finance may be more suitable for larger or complex purchases.
Before applying, compare the funding purpose with the basic business loan questions and make sure the amount requested is tied to a practical business outcome.
Key loan details
Use these details as a quick fit check before starting an application.
Requirement
Criteria
Notes
Requirement
Loan amount
Criteria
AUD $5,000 to $200,000
Notes
Subject to assessment
Requirement
Limited company trading history
Criteria
Minimum 6 months
Notes
Australian product criteria
Requirement
Sole trader trading history
Criteria
Minimum 6 months
Notes
Australian product criteria
Requirement
Minimum monthly revenue
Criteria
AUD $5,000
Notes
Recent trading revenue
Requirement
Common uses
Criteria
Cash flow, stock, wages, tax bills, equipment, marketing and growth
Notes
Business purposes only
Who Business acquisition funding guide suit
Partnership buyouts
Business owners buying out a partner or shareholder to take full control of an existing operation.
Franchise purchases
Applicants buying into a recognised franchise system with proven operating models and revenue history.
How assessment works
Approval depends on lender assessment. These are the practical points that usually matter.
Buyer trading history
SimplyFunded checks the buyer's trading history, revenue and repayment capacity as the primary assessment criteria.
Target business strength
The financial position, customer base and revenue history of the business being acquired can support the application.
Acquisition structure
The purchase price, payment terms, goodwill component and any existing debt of the target business affect the funding structure.
Benefits and trade-offs
Acquisition funding is assessed on the buyer's capacity, so strong trading history and revenue improve the application.
The purchase price should be supported by the target business financials, not just the asking price.
Due diligence on the target business is essential before committing to acquisition funding.
Before you apply
Acquisition funding starts with a clear understanding of the target business. Review the financial records, customer base, supplier agreements, lease terms and any existing debt before applying. A well-researched application is easier to assess.
The loan amount should reflect a realistic purchase price based on the target business earnings and assets, not just the seller's asking price. Over-paying for goodwill or future projections can leave the business under pressure from the start.
Consider how the acquisition will affect cash flow in the first 12 months. The loan repayment plus ongoing business costs should still leave room for wages, stock, rent and tax. If the target business revenue barely covers these, the acquisition may need a different funding structure or a lower price.
If the acquisition involves taking over existing debt or supplier liabilities, include these in the affordability assessment. A business may look profitable on paper but carry obligations that affect cash flow.
A written acquisition plan covering the purchase price, funding structure, expected revenue and cost synergies can strengthen the application and demonstrate that the buyer has done the necessary homework.
Practical business examples
Cafe acquisition
An experienced hospitality operator needs AUD $80,000 to purchase an established cafe with consistent revenue and a loyal customer base.
Franchise purchase
A buyer needs AUD $65,000 to acquire a cleaning franchise with existing contracts and a proven operating model.
Partner buyout
A business owner needs AUD $50,000 to buy out a retiring partner and take full ownership of the company.
Related funding options
equipment financedebt consolidationunsecured fundingbusiness loan requirementsbusiness loan calculatorapply for acquisition-related funding
Compare business loan rates, check business loan requirements or learn how to get a business loan before applying. You can also review business loan FAQs or speak with the team through the contact page.
Frequently Asked Questions
This page is a guide, not a dedicated franchise acquisition product. Some business purchase-related costs may be discussed, but complex acquisitions may require specialist finance.