SMALL BUSINESS FINANCE

Business Purchase or Establishment Finance

Why use PMA to finance your business purchase or establish your business:

  • You have an urgent opportunity to purchase a business and can’t wait for the bank
  • You’re looking to start a business but the bank won’t approve a loan
  • You need a loan to establish your business but can’t show profitability

Business Purchase/Establishment Finance Loan Terms


Loan Amount

Up to $5M (1st Mortgages) & $2M (2nd Mortgages)

LVR

Up to 75% (max. LVR of 75% for major metro residential property, other security at lower LVRs)

Security

1st or 2nd Mortgage

Term

3-12 months + Extensions

Business Purchase/Establishment Finance



If you’re looking for a loan to purchase a business or to fund the establishment of your new business, then a short-term business loan from Private Mortgages Australia could be a great option. Many banks and other conventional lenders have very strict lending criteria with little to no flexibility in who they will lend to. A business will need to show that they can service a loan over an extended period which is very difficult to showcase if you are purchasing a business or starting a new business. However, a non-bank lender or private lender will look at the loan application in a different way. Rather than looking at how the business will service the loan, they will usually look at how the business plans to pay back the loan at the end of the loan term. This is called the ‘exit strategy’. If the business has a strong exit strategy then a private lender will usually consider approving the loan application. Quite often, a new business will use a short-term loan while they get the business established and start making a profit. Once the business is making money and they can show that they would be able to service a regular loan they can then refinance to a loan with a mainstream bank.

Lending Process


application

Complete our
Quick App Form


or

Give us a call
1300 856 683.

indicative

After receiving the Application we’ll develop an Indicative Letter of Offer which includes an indicative interest rate.

Once the Offer is accepted a small assessment fee is charged to cover the searches we do in due diligence.

letter

Once we’ve completed our due diligence, we’ll send a formal Letter of Offer. Once signed the loan documents are drawn up and sent to the Borrower’s solicitor.

letter
congrats

Upon return of the fully executed documents the approval fee, legal costs and prepaid interest are deducted from the loan and the balance is paid to the Borrower.

Referrer fees are paid within 24 hours from settlement with no clawbacks.

We endeavor to make this process as quick as possible and can settle within 5 days upon receipt of all outstanding information.

Our Other Private Lending Solutions