Is it Possible to Buy a Business with No Money?

by Vanessa Lovie 11th of January, 2021


At Bsale, we know that buying a business is a big financial decision and one that can often turn away potential buyers. But the truth is, if you can buy a house, you can probably buy a business. In fact, you can buy a business with no money. So how can you make this happen? 

There’s a couple of steps you’ll need to take before you consider finance. Buying a business is a long-term commitment so it’s important to consider the basics including the following once you’ve found a business you’re interested in: 

  • Is this an industry you know? 

  • Is this an industry you like? 

  • Are you passionate about this business and industry? 

  • Do your skills fit the role of a business owner? 

If you respond positively to the above questions, then you may be ready to take the next step in your business buying journey.


What will you need in order to apply for a loan?

In order to successfully apply for a business loan, you’re likely going to need to provide the following key pieces of information: 

  • Comprehensive proof of personal qualifications, assets (including savings), and liabilities

  • Up to date balance sheet from the business

  • Tax returns 

  • Profit and loss statements

  • Amount planned to be invested in the business

  • A business plan including forecasts and predicted cash flow


Applying for a loan

First things first, in order to apply for a loan you’re going to have to get all of your financial ducks in a row. 

Running your own small business is an appealing idea if you have the ingenuity and know-how to make it work, but it takes a lot of money to purchase a business.

Getting a loan to buy a small business is not as simple as getting a business loan for a company that you're already running. There are three main factors to consider before you even start to look for a lender. If you don't have an answer to each of these three points, it's unlikely a lender will consider offering you money.

  1. Determine how much money you'll need

Borrowing too much means you're paying more in interest than you need to, while borrowing too little means you won't have enough for everything you need and may need to apply for a second loan. Make sure your estimation is as accurate as possible.


  1. Have a solid business plan

It's not enough to simply own a small business, you need to manage it too. Your plan should clearly show how the business will manage expenditures and income to achieve profitability and how long this will take.


  1. Consider your repayment timeline

How long will it take you to pay back the loan? How much will you be able to afford to repay per month? Will it be a consistent amount or can you pay back more as the business grows?

In response to COVID-19 the Government announced 6 month interest free loans which are available through most major banks and lenders. To find our more its a good idea to contact your bank or lender. 

If you’re looking to buy a business it’s important to get your finances organised. 

About the author

Vanessa Lovie

CEO Bsale Australia

Vanessa is the current manager and CEO of Bsale Australia. Over the past 11 years as a business owner, she understands what it takes to grow a ...

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