Finance question
Can I buy a business with no deposit?
It depends on what you can put up in place of cash. On goodwill alone, rarely, because a lender has nothing to repossess if the business fails. With property equity behind the loan, a seller who carries part of the price, or a profession lenders fund heavily, a purchase with little or no cash deposit is often achievable, subject to lender assessment.
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The short answer
A lender wants security, and cash is only one kind
Goodwill is what you pay for a customer base, a reputation and a trading history. It is real value, but a lender cannot repossess it, so most lenders will not fund the whole of a purchase that is mostly goodwill with nothing else behind it. The cash deposit is how the lender gets comfortable. You can replace the cash with something the lender can hold: equity in a home or investment property, a seller who leaves part of the price owing, or tangible assets in the sale, such as vehicles and equipment, that fund on their own.
The best cases come from professions lenders like. Specialist health banks publish loans of up to 100% of the purchase price for dental practices, although many deals settle at 70 to 90% with the balance from savings or home equity (dental practice guide). Pharmacy lenders advance 60 to 80% of independent valuation, and up to full funding where residential property equity secures the balance (pharmacy guide). Those are the top of the market, not the norm.
Most buyers sit closer to the allied health picture. Lenders typically advance 50 to 70% of a supported valuation, so a deposit of 30 to 50% comes from savings, home equity or a vendor loan, and vendor finance of 10 to 20% with the seller staying on for a year is common on clinics priced from $500,000 to $1 million (physio clinic guide). Read no deposit as no cash deposit: legal costs, due diligence and working capital still need funding. Ventas is a broker across 40+ lenders, not a single bank, and there is no upfront fee to you; the lender pays us on settlement.
Do you qualify?
What can stand in for the cash.
Equity in property
A home or investment property the lender can take as extra security.
A seller who carries part
Part of the price is paid later, and the seller stays on for a handover.
Assets in the sale
Vehicles and equipment fund separately against their own value.
Earnings that cover the debt
Clean books showing the business can service the whole loan.
Why no deposit usually means no cash deposit
Security replaces cash
A mortgage over property gives the lender what goodwill cannot.
The seller shares the risk
A vendor still owed money has a reason to hand the business over properly.
Costs still need funding
Legal, due diligence and working capital sit outside the purchase loan.
A worked example
A pharmacist buys a suburban community pharmacy for $1.5 million, valued independently at the same figure. At 80% of valuation, the top of the 60 to 80% range, the lender advances $1.2 million against the business. The remaining $300,000 is secured by a mortgage over the pharmacist's home, so no cash deposit goes in, though costs and working capital still need funding. Illustrative only.
Common questions
Frequently asked questions
Can I buy a business with no money down?
Rarely on goodwill alone. With property equity as security, a seller carrying part of the price, or assets in the sale that fund separately, the cash you need can drop a long way, subject to lender assessment.
Can the seller lend me part of the price?
Often yes. Vendor finance is common on smaller deals, for example 10 to 20% on clinics priced between $500,000 and $1 million. Lenders usually want the arrangement written into the contract and will assess it as part of the whole deal.
Do I still need cash for costs?
Yes. Legal and accounting due diligence, any valuation the lender orders and working capital come on top of the purchase price. Plan for them separately from the loan.
What if I have no property and no savings?
The options narrow to a vendor loan, a guarantor with property, or a smaller purchase where the assets in the sale carry most of the price. Talk to us early, because the structure matters more than the size of the loan request.