Buyer Faqs
Why do I need to register with Bizmarket to get information on a business?
The business information provided to us by vendors is confidential. We only provide this information to buyers who register with us, provide us with all their contact details and accept our non-disclosure agreement.
Registration is a simple online process that takes around a minute to complete and there is no cost involved.
How much does it cost to register with Bizmarket?
The online process to register is entirely free and takes around one minute to execute.
What are the costs asides from purchasing the business?
The costs that buyers need to budget for are stock, which is always in addition to the asking price. The Rental Bond which is normally around 3 months rent + 1 month Rent in advance. There may be a cost of the landlord’s solicitor’s legal fees for preparing a Deed of Assignment document and you will also have to budget for your own solicitor’s legal fees.
How do I get landlord approval?
You will be asked to fill in a Lease Application form that we or the leasing agent will provide. The main two areas of the form that will be important to satisfy the landlord will be to advise your previous industry or business experience (with references) and your Assets & Liability statement that will help to show the landlord your financial position. You can also prepare a Business Plan to help with the approval process to indicate what your future intentions are when you take over the business.
Can I borrow money to buy a business?
Yes you can. It is never easy to borrow money for the purchase of a business, however if you are able to offer security to a bank or finance broker and can demonstrate that you can pay the loan back through the business, then it can be possible. To demonstrate your ability to repay a loan including the interest you will need to show past financials and some future projections as well as a Business Plan to give the lender the confidence that you will be capable of running the business well in the future.
When do I need a solicitor?
You will need to appoint a solicitor after you have reached an agreement with the vendor, through the assistance of your broker and your offer & conditions of your offer have been accepted. The solicitor will need to review the contract with you and assist with the transfer of the lease and any licenses.
How will Bizmarket help me to find a business? Why do I get emails from different brokers?
Your Bizmarket broker will help you all along the way to find a business so it is a good idea to build a good relationship with your business broker. If you have more than one broker it is a good idea to use your Bizmarket registration number and email your broker directly with enquiries
I have paid a deposit for a business; does this mean no one else can buy this business and also can I get the deposit back if I change my mind?
Paying a deposit does not mean the business is sold as there could be more than one interested buyer. It is important to seek solicitor advice and exchange contracts as soon as possible to avoid disappointment. Once the contract is exchanged the business is taken off the market. The deposit is refundable at any time and for any reason up until when the contracts are exchanged.
I have no experience in the business industry and have never owned a business in Australia but I have the money ready to buy something. I have been unable to get approved by some landlords what should I do?
Talk to your broker about the different options, some landlords are easier to deal with than others and this is an important part of the buying process. Franchises are often a very good start for a new buyer as the franchisor often holds the lease or can help you with getting the landlord approval and also give you training and good support
Is stamp duty payable on the sale on the sale of a business?
No there isn’t, it was abolished some years ago which makes buying a business cheaper.
Is there GST payable (currently 10%) on the purchase of a business?
No, providing the business is a “going concern “ for example is currently trading.
Should I keep extra money aside for cash flow?
Yes always it's a good idea to keep extra money aside for cash flow, speak to your accountant for advice.
Should I get my accountant to look at the financial information of a business?
Yes always and get your solicitor to check the legal side of a business. For example
the terms of the lease to be entered into to.
Is it risky to enter into buying a business with friends and family?
Yes, give strong consideration prior to buying a business with friends and families. If for unseen circumstances the business falters, this can cause the relationships to fall apart which can be soul destroying.
What sort of businesses are the best to buy?
Look at businesses that attract your interest, and you feel confident you can run the business. Also if you have to borrow money to purchase the business, you will need to consider businesses with good financial figures.