Thinking about buying a business but unsure how to fund it? You’re not alone, and the good news is, it’s more doable than you might think.

At Sherpa, we see buyers make it happen every day. Whether you're eyeing a café, a courier service, or a cash flowing laundromat, here’s how to get your finance sorted without the stress.

Step 1: Know Your Strength—Sector Experience Counts

Lenders love confidence, and nothing builds confidence like experience. If you’ve worked in the industry you’re buying into, such as hospitality, retail, or aged care, you’re already ahead of the pack.

Why it matters:

You understand the risks.
You speak the industry’s language.
You’re more likely to succeed, which banks love.

No direct experience? That’s okay. Just show how your background makes you a great fit.

Step 2: Get Your Numbers Together

Before you ask anyone for money, make sure your own financials are tidy and transparent.

Assets and liabilities.
Income versus expenses.
Cash flow.

Lenders need to see that you can manage your own finances before they back your business dream.

Step 3: Map Out Your Plan and Forecast the Future

It’s not enough to say you’ll make it work. Show them how.

You’ll need a simple business plan that covers:

Who your customers are.
What sets you apart from competitors.
How you’ll market and grow.
Revenue and expense projections over 12 to 36 months.

Keep it real. Lenders value honesty over hype.

Step 4: Figure Out What You Need and What Kind of Loan Works

Ask yourself:

How much do I need to buy the business?
Will I need working capital too?
What can I realistically afford to repay monthly?

You’ve got options:

Traditional business loans.
Asset based finance secured against vehicles, equipment, etc.
Vendor finance. Some sellers will fund part of the deal.
Private lenders or small finance brokers.

Pro tip. Don’t go straight to the big banks. Independent finance brokers often offer more flexibility, faster turnaround, and better support.

Step 5: Be Ready to Offer Collateral or Guarantees

Most lenders want some form of security:

Property, yours or the business’s.
Equipment or vehicles.
Or a personal guarantee. Your name on the line.

Not always fun, but part of the process. Just make sure you’re clear on the risks before you sign anything.

Step 6: Don’t Be Afraid to Ask for Help

A good finance broker can be worth their weight in gold. They:

Know what lenders are looking for.
Can negotiate better terms.
Often get approvals faster.

We recommend chatting to a broker before jumping through bank hoops, especially if you’re buying a business for the first time.

Final Word from Sherpa

Buying a business with finance isn’t just possible—it’s normal. You just need to show that:

You’re a capable operator.
The business is solid.
You’ve got a clear plan to repay the loan.

Need help getting started? Sherpa connects buyers and sellers every day, and we’ve got finance partners who can walk you through your options.

Browse Businesses for Sale.

Ask Us About Finance Partners.

You're closer than you think.