Do I have to pay GST on the purchase price of a small business?

No, GST is generally not payable if the sale is classified as a 'going concern' under Australian Taxation Office (ATO) rules. To qualify, the buyer and seller must agree in writing that the sale is a going concern, the seller must provide everything necessary for the continued operation of the business and the enterprise must remain operational until the day of sale.

Can I use my residential property as security for a business purchase loan?

Yes, many Australian lenders allow you to use your home or other residential property as collateral to secure a business loan. Using residential security often helps you access lower interest rates, higher loan amounts and longer repayment terms compared to unsecured business finance.

Can I get a loan to buy an existing franchise?

Yes, you can obtain specialized franchise finance provided the brand is on your lender's 'accredited franchise' list. Lenders often view established franchises as lower risk because they have proven business models, audited financial histories and corporate support structures already in place.

How much deposit do I need to buy a business in Australia?

Typically, you will need a deposit or equity contribution of 20% to 50% of the total purchase price. While residential loans can often be secured with a 10% or 20% deposit, business acquisition loans are considered higher risk and usually require you to have significant 'skin in the game'.

Is it easier to get finance for an asset sale or a share sale?

Lenders generally prefer asset sales because they allow the buyer to select specific assets and avoid inheriting the legal or tax liabilities of the previous owner. A share sale involves taking over the entire legal entity, which often requires more rigorous due diligence and higher security requirements from the lender.

Can I use vendor finance to supplement my bank loan?

Yes, vendor finance is a common arrangement where the seller allows you to pay part of the purchase price over time through regular instalments. This can be used to bridge the gap if a bank is only willing to lend a portion of the required capital, though you must disclose the arrangement to your primary lender.