How To Raise Funds To Buy A Business In Australia

Acquiring a high performing business is a great way to step into an entrepreneurial world with minimal overhead. Driven individuals, budding entrepreneurs and independent women can fulfil their dream of being their own boss and create their own successful story.

An existing business with proven operations, a loyal customer base, effective marketing and long term contracts lets you enjoy high profit margins and consistent growth. However, the most challenging part is raising funds for your business acquisition. There is no denying that business loans in Australia rose to $929.58 billion in August 2025, but there are more funding options you can capitalise on for a business purchase.

Here is a comprehensive guide to help you raise funds to buy a business for sale in Perth. Ensure you do proper research about the business, potential lending options, your borrowing capacity and other crucial factors to make the most of your entrepreneurial investment.

1. Investing Personal Savings and Equity

Whether it’s your dream to run a retail shop in the hotspots of Perth or a flexible ecommerce business, securing necessary funds is essential for acquisition. Bootstrapping your business purchase is one of the first few options you can think of.

Using your hard earned savings to own your dream business saves you from long term loan repayments. You can use your assets and term deposits to raise the necessary funds if required. You can also borrow money from your family and friends.

Before making a final decision, remember that using your lifetime savings in an unknown business can be a risky endeavour. Make sure you do proper research, conduct legal and financial due diligence to avoid lawsuits, financial setbacks and other potential challenges.

2. Get a Loan to Buy an Existing Business

This is one of the most reliable options to secure funds for a business acquisition. Banks in Australia offer loans to buy a business without putting your savings or equity at risk. The best part is that you can compare interest rates and get a loan at the most competitive interest rate if you meet their eligibility criteria. Two types of business purchase loans are:

Secured Loans: The buyer is required to provide collateral, which covers their personal assets and home. This type of funding option helps minimise the risk of bands while allowing you to enjoy the lowest interest rates.

Unsecured Loans: Under this, banks don’t ask for personal assets or residential property before lending money. However, they have a higher interest rate. Banks provide you with a loan based on your credit score, credit history, and financial track record.

3. What do Banks usually Require Before Lending Money?

The bank conducts due diligence to evaluate the borrower’s profile, financial stability and borrowing capacity. They also assess a business's growth prospects, expected profitability, and stability. Strong cash flow and transparent financial records ensure smooth sailing. Banks usually need:

- Financial documents of the business

- Tax return files for at least two years

- Borrower’s profile, including qualification as an entrepreneur

- Current balance sheet of the business

- Personal assets and liabilities information

- Invested equity details

- P/L forecast for two years

This is one of the most reliable funding options when acquiring a business for sale Perth. You can stay relaxed and create a bright entrepreneurial career without a hint of stress.

4. Financing Via a Vendor: A Reliable Funding Option

There is no denying that a transition in ownership requires funds. You can opt for a vendor financing option for buying a small or medium sized business.

Under this, the business seller funds a part of the purchase price. The buyers, on the other hand, pay an initial upfront amount to the seller on settlement. This also includes the balance of the buying price over an agreed period and in instalments.

This is a viable financing option if you are finding it hard to secure a business purchase loan from banks and private lending institutes. The sellers can also enjoy the benefits of interest rates. Ensure you check the vendor financing documents, including:

- The borrowing funds

- rate of interest

- the repayment schedule, like quarterly or annually

- loan term

- guarantor of a buyer

- The seller’s rights when buying defaults

5. Borrow Funds from Private Investors or Business Partners

Many businesses secure funding from private investors and business partners to acquire an existing operation. However, you are encouraged to bring in people who have sufficient funds and expertise to run a successful business. When you introduce private investors and partners, you share ownership, profits, revenue and decision making.

It is good to prepare agreements to define proper roles such as retaining existing customers or creating marketing strategies, profit share and exit plan before entering into a partnership deed.

6. Government Grants and Supported Loans

Don’t miss out on an opportunity to leverage grants and loan schemes provided by the Australian government. You can discover more about the Small Business Loan Guarantee Scheme when funding a business for sale in Perth. These are some of the best options to help young, aspiring and small entrepreneurs in their business journey.

Under this, the government guarantees around 50 to 80 per cent of the loan to reduce the lender’s risk when raising funds. You can use these funds to start a small business from scratch, acquire an existing venture or expand your operations with the support of government funds.

Tip: Focus on understanding the criteria to access government supported loans and schemes

7. Important Things to Remember When Secure Funds for a Business Acquisition

Before you seek funding options, you, as an aware buyer, should focus on:

- Evaluate the business price.

- Review two to three years of financial statements and tax returns.

- Understanding your borrowing capacity

- Legal due diligence when acquiring a business

- Consider additional expenses, such as stamp duty, legal fees, etc

- Confirm the seller’s financial information

These are some of the most crucial aspects that can help you enjoy the maximum return on your entrepreneurial investment in Perth.

Wrapping Up

Buying an established, lucrative business requires thorough research before securing necessary financial resources. Potential business buyers can arrange capital from equity, traditional banks, private lenders, government schemes, and vendor financing to embark on a thriving entrepreneurial journey as a successful business owner.