Business Purchase / Establishment Finance

Why use PMA to finance your client’s business purchase or to establish their business:

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

Business Purchase/Establishment Finance Loan Terms

Loan Amount

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


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


1st or 2nd Mortgage


3-12 months + Extensions

Business Purchase/Establishment Finance

If your client is looking for a loan to purchase a business or to fund the establishment of a 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 they 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.

CASE STUDY: Belgrave, VIC – Restaurant Purchase

The Borrowers have a background in operating restaurants.

The purpose of this loan is to refinance an existing loan and complete the purchase of a Restaurant Business in Gembrook, a one-hour drive from Melbourne, VIC.

The Borrowers can’t get bank finance as their latest financials are not up to date.

Security on offer is a residential property in Belgrave, a quaint town rich in history, nature and excellent wine. The property is on 1,273msq land and has a single level dwelling that consists of three bedrooms, one bathroom and a garage.

The exit strategy is to refinance out once financials are prepared.


Security Property Valuation: $620,000.00

Loan Amount: $250,000.00 (First Mortgage)

LVR: 40.32% 

Interest rate: 7.50% p.a.

Term: 6 months plus 3 monthly extensions

Restaurant Business in Gembrook

Ready to discover how PMA can help provide finance solutions for your business (or your client's business)? Submit a scenario now and we'll get in touch (4-business hours response time guaranteed!)

Submit a Scenario

Lending Process


Complete our
Quick App Form


Book a Call
with our head of relationships


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.


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.


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.

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