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Raj K.
Raj K.
Marrickville, NSW

My business partner and I have had a printing business for 9 years…. We both now want different things and I have agreed to buy him out within the next 6 months. Are there finance options to help me buy his shares?

6 years ago


Hi Raj,

VMG are a specialist lender who work with Small Business owners. Do you have residential property with equity to offer as security?
How much are you seeking to finance?
Happy to have a further chat.


6 years ago

Hi John, I would prefer not to include my property assets. The business has no debts and we have agreed on a price of 1.5m so I have to pay 750k


I think you’ll struggle to find an unsecured loan at that level even with private funders. You may be forced to arrange a private agreement and pay it off over time and possibly use your property for some.

Hi Raj,

is the buyout ämicable??? Is there any chance that your partner will allow you to pay him out over time with the profits generated by the business?? This might provide you an option that will get you both what you need......if he has the time to wait for his money.....you can factor in a commercial rate of interest on the arrangement to compensate your partner for the time he has to wait to get paid.
Get yourself a good commercial lawyer: they ARENT cheap. I am sure that the advice will pay for itself many times over.

good luck

Hi Raj,

Per BC above, get the legal advice - not only for the prospect of the vendor finance option, but also the contract itself! Make sure your old partner isn't going to open up next door and take half your clients with him!

From experience, you may be able to finance some of the value against the business if it ticks the appropriate boxes. You'll need an experienced business finance broker rather than just a home loan specialist to see what options might be available.

good luck!


Hi Raj,

I agree with both Brendan and Todd here.

There are many options and also legal requirements to consider.

I understand why you wouldn't want to put your home up as security, but the lenders also want to make sure you have some skin in the game. Many lenders will prefer to take some 'bricks and mortar' security as it's a more stable security that they can sell up quickly to get their money back in the event of defaulting on your loans. Although this is a general desire, there are also lots of lenders that lend against the business and it's assets, depending on the strength of the business, your contribution, and potential future earnings. When it comes to business lending, there is no standard one-way approach and we take your business and personal circumstances into account when assessing.

Scott Juda
Finance Broker
0412 092 107

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