Does anyone have experience in securing debt for acquisitions in Australia?

by a searcher from Swinburne University of Technology

3 years ago

I am at the early stages of a self funded search in Australia. Deal flow hasn't proven to be an issue however once I have landed on a target I will require somewhere between###-###-#### % debt financing to close the deal.

The challenge I am having is any banks & second tier lenders I have spoken with don't appear to have an appetite for true SME acquisition financing outside of small working capital loans. 

In particular the requirement seems to be to use residential property to secure any debt (effectively only interested in mortgage lending) or strict personal guarantees.

Does anyone have any advice?

1 like
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12 comments

searcher from The University of Adelaide - Business School

Ed, some individuals and family offices have an appetite to cash flow lend in Australia, typically those that still have an operating mentality and industry experience relevant to your target will be attracted. Private credit funds such as Longreach, Causeway and challenger banks such as Judo are also started to get more active in LMM. Our banks have also seen their deposits increase substantially due to Covid and Job Keeper - they need to put these deposits to work and that seems to have generated some thawing of appetites to lend into the SME sector.

3 years ago | like reply | 0 likes

searcher from La Salle University - School of Business

Nice!

3 years ago | like reply | 0 likes

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