Anyone have experience raising debt financing in Australia?

searcher profile

October 23, 2020

by a searcher from Monash University in Melbourne VIC, Australia

I've identified a potential acquisition target for my fund in Australia and am currently looking to source senior debt for around 50% of the purchase price. The vendor is asking $1.1m for the business which is currently generating adjusted EBITDA of approx. $550k.

Most banks in Australia are very reluctant to lend to SMEs unless they can secure the loan against real estate. Anyone have any relevant experience they can share or any banks/contacts they can recommend?

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commentor profile
Reply by a professional
from University of Limerick in Perth WA, Australia
Hi Henry - feel free to contact me on redacted to tee up a quick call and I can give you some more flavour on the SME debt market. Lending sub $1M is difficult without being secured by property as many banks use auto decisioning systems to make credit decisions i.e. the computer says yes or the computer says no
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Reply by a searcher
from INSEAD in Terrigal NSW 2260, Australia
Henry, if you send me an email at redacted I can put you in touch with someone who may be able to assist - I was looking at a slightly larger deal earlier this year, cashflow based lending.
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