Clear answers to common questions about business finance, business acquisition loans, asset finance, working capital, commercial property, home loans and SMSF property finance. Understand your options before you apply.
Finance depends on your business position, cash flow, security, loan purpose and lender policy. These FAQs explain the fundamentals so you can make a more informed decision before speaking with a lender or broker.
Finance options for Australian businesses looking to grow, refinance, acquire assets or manage cash flow.
A business loan provides funding for a commercial purpose such as expansion, equipment, working capital, refinancing, business acquisition or other business expenses. The appropriate structure depends on the purpose of the funding, the business's financial position and the lender's criteria.
Probiz Finance helps Australian businesses compare business lending options across a panel of lenders. Explore our business loans page to understand the available structures.
A secured business loan is supported by security such as property or eligible business assets. An unsecured loan generally does not require traditional property security, although lenders may still require guarantees or other forms of support.
Secured lending can be suitable where a business needs a larger facility or longer repayment structure. Unsecured finance may be useful where speed or flexibility is more important and suitable lender criteria are met.
See our secured business loans information for more detail.
There is no single maximum amount that applies to every business. Lenders consider factors such as revenue, profitability, existing debt, cash flow, security, industry, trading history and the purpose of the loan.
Larger commercial transactions may require a more detailed assessment and a combination of security and funding sources.
The RBA sets the cash rate target rather than individual business loan rates. The cash rate influences broader funding conditions and other interest rates in Australia. Business lending rates can also depend on the lender, loan structure, risk profile and reference rates such as BBSW.
Many lenders do consider newer businesses, but requirements vary significantly between lenders and loan types. Some lenders focus more heavily on trading history, while others place more weight on the director's experience, cash flow, security or the strength of forward contracts and orders.
There's no single industry-wide minimum trading period that applies to every lender or product. If your business is newer, the right approach is usually to have a conversation about your specific position rather than assume you don't qualify — different lenders assess newer businesses differently.
Funding considerations when buying an existing business, franchise or professional practice.
Yes. Business acquisition finance can be used to fund eligible acquisitions, including businesses, franchises and professional practices. Lenders generally assess the business being purchased, its historical financial performance, the proposed purchase price, the buyer's experience, available security and the expected ability of the business to service the debt.
Learn more about business acquisition finance before signing a purchase contract.
The required contribution varies significantly between transactions. It can depend on the quality of the business, profitability, industry, goodwill, available property security, buyer experience and lender policy.
A finance assessment before committing to the purchase can help establish a realistic funding structure.
In suitable circumstances, existing residential or commercial property equity may contribute to the security structure for an acquisition. The lender will assess the property, existing debt, loan-to-value ratio, borrower position and the business being acquired.
If the acquisition also includes commercial premises, see our commercial property finance options.
Lenders generally look at the transaction as a whole, not just the buyer's personal financial position. Common areas of assessment include:
Because every acquisition is different, the weighting given to each factor depends on the lender, the industry and the specifics of the transaction. Speaking with a broker early — before signing a purchase contract — can help identify what a lender is likely to focus on in your situation.
Goodwill generally represents the value of a business above its identifiable physical and financial assets — things like reputation, customer relationships and brand. In an acquisition, the purchase price is often split between tangible assets and goodwill.
Lenders typically treat goodwill more cautiously than physical assets, because it can't be sold or recovered in the same way if something goes wrong. This means acquisitions with a higher proportion of goodwill in the purchase price may need a different funding structure — for example, more security elsewhere, a larger buyer contribution, or a combination of funding sources — rather than being financed the same way as a purchase of hard assets alone.
Finance for franchise purchases is available in many cases, and some lenders have specific policies or streamlined processes for recognised franchise systems. That said, lender appetite and requirements can vary depending on the franchise brand, the franchise agreement terms, the buyer's experience and the financials of the specific outlet being purchased.
It's worth having your finance options assessed alongside your review of the franchise disclosure documents, rather than after you've already committed.
Timeframes vary depending on the complexity of the transaction, the lender, and how quickly the required financial and legal information is available. Straightforward transactions with clear financials can generally move faster than more complex acquisitions involving goodwill, multiple security sources or unusual structures.
Because timing can affect settlement dates and negotiating position, it's generally worth starting the finance conversation as early as possible in the buying process — ideally before signing a purchase contract — rather than leaving it until settlement is close.
Finance for vehicles, machinery, equipment, technology, fit-outs and other business assets.
Asset finance is funding structured around the purchase or use of a business asset. Depending on the transaction, this may include equipment finance, vehicle finance, chattel mortgages, finance leases and other structures.
The right structure depends on the asset, business, intended use, tax position and lender requirements.
Explore asset and equipment finance options with Probiz Finance.
Many lenders finance both new and used business assets, although eligibility, maximum loan terms and valuation requirements can differ depending on the asset's age, condition and type.
Not necessarily. The appropriate choice depends on the business's cash reserves, asset cost, expected return, tax considerations and the cost of finance.
Financing an asset can preserve working capital for wages, stock, marketing and other operating requirements, but borrowing also creates repayment obligations.
These are three common ways to structure equipment or vehicle finance, and each works a little differently:
Which structure suits a particular business depends on factors like how the business wants to treat the asset for tax and accounting purposes, cash flow preferences, and how the business plans to use the asset. Because tax treatment differs between structures and can change, it's worth confirming the current implications with your accountant alongside your finance conversation.
Manufacturing businesses often have equipment finance needs that differ from general business equipment — for example, higher-value machinery, longer useful-life assets, or equipment that needs specific installation or commissioning. Lenders assessing manufacturing equipment finance will typically look at similar factors to other asset finance (the asset itself, the business's cash flow and the proposed structure) but may also consider the equipment's specialisation and resale market.
Funding designed to help businesses manage the timing gap between expenses, customer payments and growth opportunities.
Working capital finance provides funding for the day-to-day operating requirements of a business. Depending on the facility, this can include wages, supplier payments, stock, operating expenses and short-term cash flow gaps.
See Probiz Finance's working capital solutions for different facility types.
A business overdraft is generally a revolving credit facility linked to a business transaction account. Subject to lender terms, a business can draw funds when required and repay them as cash becomes available.
It may be appropriate where there is a predictable timing gap between business expenses and incoming customer payments, seasonal requirements, growth opportunities or a temporary increase in operating costs.
Finance should not be used to hide an unsustainable business model. The lender will assess whether the proposed facility is appropriate for the business's circumstances.
These all address cash flow, but work differently:
The right option depends on your cash flow pattern, whether the funding need relates specifically to unpaid invoices or to broader operating costs, and how you want to structure repayments. A broker can help compare these side by side against your actual cash flow cycle.
Understand how businesses can potentially unlock cash tied up in outstanding customer invoices.
Invoice finance allows an eligible business to obtain funding against outstanding invoices rather than waiting until customers pay them.
The amount advanced, fees, verification requirements and repayment structure depend on the lender and facility.
Read more about invoice finance for Australian businesses.
Not exactly. Traditional business lending is generally assessed around the business and its ability to service debt. Invoice finance is structured around eligible receivables and the payment obligations of customers.
Which option is more suitable depends on the business's cash flow cycle, customer base, invoices and funding requirements.
Funding for businesses and investors purchasing or refinancing commercial property.
A commercial property loan is finance used to purchase, refinance or otherwise fund eligible commercial real estate such as offices, warehouses, industrial property, retail premises and other specialised commercial assets.
Explore commercial property loans with Probiz Finance.
The required contribution varies by property type, purpose, borrower strength, valuation, rental income, security and lender policy. Commercial lending is generally assessed more specifically than a standard residential home loan.
Yes, eligible businesses may obtain finance to purchase owner-occupied commercial premises. Lenders generally assess both the property and the business's ability to service the proposed debt.
Common questions for Australian homeowners, investors and self-employed borrowers.
Yes. Self-employed borrowers can apply for home loans, although lenders may assess business income differently from PAYG income. Depending on the lender and circumstances, alternative documentation or low-documentation options may be available.
The lender will still need enough information to assess the borrower's ability to meet the proposed repayments.
The RBA cash rate influences broader interest rates in Australia. Changes in the cash rate can flow through to variable mortgage rates, although the actual rate offered by a lender depends on its pricing, funding costs, borrower profile and loan structure.
Source: Reserve Bank of Australia
Important questions about borrowing through a self-managed super fund to purchase eligible property.
SMSFs can borrow in limited circumstances under a Limited Recourse Borrowing Arrangement (LRBA), subject to the requirements of superannuation law and the fund's governing rules.
SMSF borrowing is highly regulated. Trustees should obtain appropriate legal, tax and financial advice before entering into an arrangement.
Source: Australian Taxation Office — SMSF investment restrictions
Certain commercial property arrangements involving an SMSF and a related business may be possible, but strict superannuation rules apply. The transaction must satisfy the relevant requirements, including rules concerning related parties, investment purpose and arm's-length dealings.
Probiz Finance can help coordinate the finance side, but SMSF trustees should obtain specialist SMSF legal and tax advice before proceeding.
See our SMSF property finance page.
An LRBA is a Limited Recourse Borrowing Arrangement that allows an SMSF to borrow to acquire a single acquirable asset, subject to strict legal requirements. The borrowing structure is designed so that the lender's rights against other SMSF assets are limited in accordance with the applicable rules.
Source: Australian Taxation Office
What lenders generally look at when assessing a finance application.
Depending on the loan type and lender, documents can include financial statements, tax returns, business bank statements, identification, ABN details, existing loan information, asset details, property information and information about the purpose of the funding.
The exact requirements vary. Probiz Finance aims to identify the relevant lender first so you can avoid preparing unnecessary documentation.
No. Credit history is only one part of a lending assessment. Depending on the product, lenders may also consider income, business cash flow, existing debts, security, loan purpose, trading history and other relevant information.
The exact assessment methodology varies between lenders and loan products.
A finance broker helps assess a borrower's requirements, identifies potentially suitable lenders and assists with structuring and submitting the application. The value isn't just finding a lender — it's understanding which lending approach may actually fit your business and its circumstances, since different lenders assess businesses differently and have different credit appetites.
ASIC explains that people engaging in credit activities, including many finance brokers, generally need an Australian credit licence or appropriate authorisation.
Source: ASIC — Credit
Responsible lending obligations require relevant credit licensees to make reasonable inquiries about a consumer's financial situation, requirements and objectives, take reasonable steps to verify the consumer's financial situation and assess whether a credit contract is not unsuitable.
Source: ASIC — Responsible Lending
Timeframes vary by lender, loan type and how complete the supporting documentation is when the application is submitted. Simpler, well-documented applications generally move faster than complex transactions requiring additional verification or multiple security sources.
Having your documentation organised before applying — and working with someone who can identify a suitable lender first — can help avoid delays caused by preparing information a particular lender doesn't actually need.
A decline from one lender doesn't necessarily mean finance isn't available elsewhere. Lenders assess businesses differently and have different credit appetites, risk tolerances and product criteria — a business that doesn't fit one lender's policy may still fit another's.
Rather than reapplying broadly (which can create multiple credit enquiries), it's generally more effective to understand why the application didn't fit that particular lender and identify a more suitable option before applying again.
Start with the finance type that best matches your current business or property goal.
Funding for growth, expansion, refinancing and business purposes.
Explore Business Loans →Finance structures for buying an existing business, franchise or practice.
Explore Acquisition Finance →Finance vehicles, machinery, equipment and other business assets.
Explore Asset Finance →Purchase or refinance offices, warehouses, retail and other commercial property.
Explore Commercial Property →Flexible funding to manage operating expenses and business cash flow.
Explore Working Capital →Specialist lending for eligible SMSF residential and commercial property transactions.
Explore SMSF Finance →For regulatory, monetary policy and superannuation information, always refer to the relevant Australian government or regulatory authority.
The RBA explains Australia's cash rate, monetary policy,
financial conditions and developments in business lending.
Visit the Reserve Bank of Australia →
ASIC provides information about credit regulation,
responsible lending and obligations applying to credit
licensees and representatives.
Visit ASIC Credit Resources →
The ATO provides official information about SMSFs,
investment restrictions and superannuation rules.
Visit the Australian Taxation Office →
Every business and property transaction is different. Tell us what you're trying to achieve, and we'll help you understand which finance structures may be worth exploring.
Talk to Probiz FinanceYOUR BUSINESS, OUR PRIORITY