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The deposit question, answered properly
How much deposit do you need to buy a business in Australia?
The published answer is 30–50% of the purchase price. The structured answer — for buyers who own property — is a different number entirely. Both are below, sourced, dated, with the workings shown.
Subject to lender criteria, security position and eligibility. Figures on this page reviewed quarterly — last reviewed August 2026.
30 minutes with Priyank. No application, and no lender sees anything until you say so.
The direct answer
Two answers. Both true. Only one is usually quoted.
If you structure the way published market guidance assumes, budget 30–50% of the purchase price — $200,000 to $330,000 on the average Australian business listing of $659,535 (Bsale buyer FAQ, December 2025).
If you own property and the transaction is $400,000 or more, the structured answer is different. On 8 out of 10 Prevail Finance transactions, clients settle at 95% LVR or above — under $35,000 of deposit on that same average purchase. Subject to lender criteria, security position and eligibility.
Deposit only. Transaction costs, stamp duty where applicable, and working capital are additional — the full entry cost is published here.
What the market publishes
The receipts, so you can check us.
This guidance is honest. It describes the standard structure — a lender funding only what it can secure. It is not a judgement on you, and it is not the only structure.
| Source | Published guidance | As at |
|---|---|---|
| Bsale — Australia’s largest business-for-sale portal, buyer FAQ | Lenders cap LVR at 50–70%; budget a 30–50% cash deposit — $200,000–$330,000 starting capital on the $659,535 average asking price | Dec 2025 |
| Published commercial-lending guides | Acquisition loans fund 50–70% of the purchase price; secured bank rates around 7.5–9% p.a. | Jul 2026 |
| Published bank-lending guides | Most banks ask 20–30% down — or around 30%, or a charge over the family home | 2026 |
| Reserve Bank of Australia | Around half of small business credit is secured against residential property; under 5% is unsecured | Jul 2026 |
Every buyer in Australia reads a version of that first row before they read anything else. Most check their savings against it and stop. That is the number this page exists to correct.
The workings
The same business. Three very different cheques.
Nobody should publish a number like 95% without showing how it is built. Here it is on a $650,000 purchase — near the national average asking price — and again at $1,000,000.
| Structure on a $650,000 business | Deposit required |
|---|---|
| Market standard, 70% LVR | $195,000 |
| Market standard, 50% LVR | $325,000 |
| Structured at 95% | $32,500 |
| Structure on a $1,000,000 business | Deposit required |
|---|---|
| Market standard, 70% LVR | $300,000 |
| Market standard, 50% LVR | $500,000 |
| Structured at 95% | $50,000 |
On the $650,000 purchase, that is between $162,500 and $292,500 you do not have to find.
Deposit only. Excludes stamp duty (varies by state; nil on commercial property in South Australia), legal, valuation, application and due diligence costs, and working capital. Market-standard LVRs of 50–70% are drawn from published Australian industry guidance and reviewed quarterly. The LVR achieved on any transaction depends on lender criteria, your security position and eligibility. See the full cost of getting in.
Straight scoping
When 95% or above is realistic — and when it is not.
It generally works when
- You own property — a home or investments — with usable equity
- The purchase is $400,000 or more
- The business is established, with financials that support the debt
- The industry is one lenders bank confidently — automotive, manufacturing, engineering, building and construction, transport, professional practices
- Hospitality — where a freehold is attached
It generally does not when
- There is no property behind the purchase and the price is under $400,000
- It is a start-up with no trading history and no security
- The vendor will not produce financials, or due diligence is being skipped
- The numbers only work at the maximum a lender will tolerate
We tell you which side you are on in the first seven minutes — before you have spent anything. Turning away the wrong structure is how the 8-out-of-10 figure stays honest.
Where deposits actually come from
Cash is one source. It is rarely the main one.
Equity in property you own
The engine of Australian business lending — around half of all small business credit is secured against residential property (Reserve Bank data). Released as a separate facility or offered as additional security; the two behave differently, and choosing deliberately is part of the structure.
Cash savings
Still counted, still useful — but the most expensive capital you will ever deploy, and usually better held as working capital for the first year of trading than surrendered as deposit.
Vendor finance
On some transactions the seller carries part of the price on terms. Lenders read it as both a funding source and a confidence signal — a vendor who will not back the business they are selling tells you something.
A combination
Most settled files blend all three. The mix decides the rate tier, the covenants and how much cash stays in your pocket at settlement — which is why the structure is the real product, not the loan.
Next step
Find out your number before you fall in love with a business.
Priyank calls you within four business hours. Seven minutes — what you are trying to buy, what sits behind you, and whether a 95%-plus structure is realistic on your file. Then a 30-minute Action Plan puts the numbers on paper.
No application, and no lender sees anything until you say so. Either way, you leave with a plan.
Straight answers
Fair questions.
What deposit do I need for a $1,000,000 business purchase?
Under published market guidance of 50–70% LVR, budget $300,000–$500,000. Structured against property you already own, at 95% the deposit is $50,000 — plus transaction costs and working capital. On 8 out of 10 Prevail Finance transactions, clients settle at 95% or above. Subject to lender criteria, security position and eligibility.
Why do banks quote a 30–50% deposit when some brokers advertise 95% or more?
A bank lends against what it can secure. Goodwill — the customer list, contracts and trading history that make up most of a business’s price — cannot be repossessed, so a standard acquisition loan funds only the securable portion. A 95%-plus structure changes the security package, typically using property the buyer already owns, so the lender is funding against real property as well as the business.
Does the deposit have to be cash savings?
No. Equity in property you already own is the most common source — around half of Australian small business lending is secured against residential property and under 5% is unsecured, per Reserve Bank of Australia data. On some transactions vendor finance carries part of the price. Most files combine cash, equity and terms rather than relying on one.
How much money do I need beyond the deposit?
Allow for stamp duty where it applies (it varies by state and is nil on commercial property in South Australia), legal and accounting fees, valuation, due diligence and working capital from day one. On a mid-market purchase these commonly add tens of thousands of dollars. The full cost breakdown is published here.
Who does a 95% or higher structure not work for?
Buyers with no property behind them on purchases under $400,000, start-ups with no trading history and no security, and anyone unwilling to complete due diligence. We work on business and commercial transactions from $400,000. If the structure will not work for you, you hear that in the first seven-minute call — before you have spent anything.
How long does business acquisition finance take to approve?
An indicative answer typically lands within days of a complete file. Formal approval commonly runs two to six weeks depending on the lender, valuation turnaround and the complexity of the structure. The slowest step is usually assembling the vendor’s financials — run finance in parallel with due diligence, not after it. The full acquisition-finance picture is here.
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