# Loans to buy a business in NZ > To buy an existing business in New Zealand, most people combine their own money with a bank loan secured on their home, a specialist acquisition loan or payments to the seller over time. Here's how each works and what lenders want to see. By Jason Dark, last checked 2026-11-08. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper. ## The short version - Most lenders won't cover the entire cost of buying a business, so you'll need to put in some of your own money. - Line Capital's AcquisitionLine can lend up to $500,000, usually 70% to 85% of the price, for businesses that have been operating for at least 3 years. - Banks offer term loans for buying a business, and they often require your home as security. - Some sellers let you pay part of the purchase price from the business's profits after you take over. ## How do you finance buying a business? In New Zealand, most people buy a business using a mix of their own money and a loan. The loan usually comes from a bank and is often secured against your home, or from a specialist lender like Line Capital. Some sellers may also let you pay part of the price over time from the business's profits. Lenders look for two things: proof that the business makes enough to cover repayments, and proof that you can run it. Putting in your own money shows you're sharing the risk. ## Business acquisition loans [Line Capital](https://smallbusinessloan.co.nz/lenders/line-capital)'s AcquisitionLine is the main online loan in New Zealand designed for buying a business. | | AcquisitionLine | | --- | --- | | Amount | Up to $500,000, generally 70% to 85% of the purchase price | | Term | 6 to 60 months | | The business you're buying | An established NZ business that has traded for at least 3 years, with $200,000 or more a year in turnover | | You | Relevant experience and your own contribution | | Security | Personal guarantees and business security, sometimes property | | Cost | Fixed rates from 16% a year, set by risk, plus a 2.5% origination fee | Most other online lenders base their loans on your current business's trading history, so they can't help if you don't already own the business. ## Bank loans to buy a business Banks offer term loans for buying a business, which can last longer and usually cost less than online loans. [ASB](https://smallbusinessloan.co.nz/lenders/asb)'s term loans range from 6 months to 25 years, and ASB says you might be able to use your house as security if you have enough equity and a business plan. The other main banks offer business term loans too, and the [business loans guide](https://smallbusinessloan.co.nz/loans/business-loans) compares them. Have the business's financial statements from the past few years, your business plan, a cash flow forecast and details about the security you're offering ready before you apply. If you borrow against your home, you'll usually get a lower rate, but your home is at risk if the business can't pay back the loan. ## Vendor finance Sometimes the seller lets you pay part of the price after you take over, using the business's profits. business.govt.nz suggests offering a gradual handover like this and says some owners prefer it because it shows you expect to make the business work. It also gives the seller a reason to help with the handover. Ask a lawyer to include these terms in the sale agreement, including what happens if the business makes less than expected. ## What lenders look at Lenders look at the business you're buying just as closely as they look at you: - **The business's accounts** for at least the last few years, and whether its profits can cover the repayments with room to spare. - **What you're paying for.** The price is split into assets and goodwill, and goodwill is harder for a lender to get back if the business fails. - **Your experience** in the industry or in running a business. - **How much of your own money** you're putting in. - **Security**, like your home, the business's assets or a [personal guarantee](https://smallbusinessloan.co.nz/glossary/personal-guarantee). ## Before you buy Do your due diligence before taking out any loan. business.govt.nz suggests checking for legal disputes, confirming the business owns its key assets, reading every contract, finding out which staff will stay and asking your accountant to check the financial forecasts against the books. Make the sale agreement conditional on finance so you can walk away if a lender says no. ## Common questions ### How much deposit do I need to buy a business? It depends on the lender and the business. Line Capital's AcquisitionLine usually lends 70% to 85% of the purchase price, so you'd need to cover the rest yourself. Banks set the amount by the security you offer and what the business can repay. ### Can I use my house to buy a business? Yes. Banks often lend against your home to fund a business purchase, and ASB says you may be able to use your house if you have enough equity and a business plan. The loan costs less than an unsecured one, but you could lose your home if the business can't repay it. ### What is vendor finance? Vendor finance is when the seller lets you pay part of the price over time, usually from the business's profits. business.govt.nz says some owners prefer this because it shows them you expect to make the business a success. ## Sources - [Line Capital: AcquisitionLine](https://www.linecapital.co.nz/acquisitionline) - [business.govt.nz: Buying a business or franchise](https://www.business.govt.nz/business-stage-or-type/starting-a-business/buying-a-business-or-franchise) - [ASB: Business term loans](https://www.asb.co.nz/business-loans/term-loan.html) - [ASB: Using your house as security for a business loan](https://www.asb.co.nz/help/business-loan-use-house-as-security.html) - [ANZ: Buying, starting or franchising a business](https://www.anz.co.nz/business/bizhub/running-your-business/buying-or-franchising-business/)