Finance A Business and The Property it Trades From

How Do You Finance A Business and The Property it Trades From?

Short answer: often with more than one facility. The property is commonly funded with commercial property lending, and the business purchase with a separate cash-flow business loan. Your contribution may come from savings or from equity in other property. Each piece is assessed on its own terms, so they need to be planned together.

Last reviewed: October 2026

What are the pieces?

A business sale price can include items that aren’t property, such as goodwill, stock and equipment. Ask your lender how each is treated. Our guide to using equity explains how a contribution can be funded from other property.

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What should you do, and in what order?

1. Get the full breakdown on paper. Property price, business price, stock, goodwill, equipment and working capital.

2. Decide where the contribution comes from. Savings, equity or both, before choosing lenders.

3. Gather the documents. Up-to-date business financials, tax returns, BAS statements and bank statements where required. The lease, contract of sale, business sale agreement and any franchise or licensing documents. Details of your existing properties, debts and available security.

4. Check dates and finance conditions with your solicitor. Know what you’ve agreed to before you sign anything unconditional.

5. Plan a cash buffer after settlement. Using every available dollar at settlement can leave little room for the first months of trading.

Why does timing cause so many problems?

Commercial deals often take longer because valuations, leases, contracts, financials and legal due diligence all have to line up. When the finance is arranged one loan at a time, a delay on one can hold up the others. That is why it helps to plan the purchase as one transaction from the start.

Does it matter that you’re buying in Victoria?

The broad structure of a business and premises purchase doesn’t change from state to state. Duties and other purchase costs do, so confirm those with your solicitor or accountant before you set your budget.

Frequently asked questions

Do I need separate loans for the property and the business?
Often, because they are assessed differently. In the case we’ve published, the premises and the business purchase had separate facilities arranged together.

What if I lease the premises?
Then the lease becomes one of the key documents to line up alongside the business sale agreement.

Who does what?
Your accountant and solicitor advise on structure, tax and contracts. A broker works on the lending. It helps when everyone is working from the same plan.

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Priya Dey is the founder of Finance Square Group, a Melbourne-based finance broking firm specialising in self-employed borrowers, investors and business owners.

This article is general information only and does not take your objectives, financial situation or needs into account. It is not a recommendation that any product or lender is suitable for you, and it is not legal, tax or accounting advice. Lending policies referenced on this page are current as at October 2026 and are subject to change without notice. Every application is assessed case by case and approval is not guaranteed.

Finance Square Group is a trading name of Sioux Property Solutions Group Pty Ltd, Credit Representative 543438, authorised under BLSSA Pty Ltd, Australian Credit Licence 391237.