Finance question
Can I get finance if I bought the business on an earnout?
Often yes. Buying a business on an earnout does not stop you getting equipment finance. The asset you are buying secures the loan, and a lender is matched to the way your acquisition is structured.
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The short answer
An earnout does not block equipment finance
Buying a business where part of the price is paid over time, tied to future performance, is a common structure. It can make traditional lending awkward, because the seller may still be owed money and the trading history sits partly under the previous owner. Equipment finance handles this more easily, because it is secured by the asset you are buying rather than by the acquisition itself.
The trading history question is where a broker helps. On an earnout you may be running a business that has years of history under someone else's name and only months under yours. Some lenders will weigh the established trading behind the business, others focus on the asset and the deal. Across 40+ lenders, the task is to match you to the ones comfortable with the handover.
The equipment you need still stands on its own. Whether it is a vehicle, machinery or a fit-out for the business you have taken over, that asset secures the finance. Low-doc and no-doc options mean the loan can often proceed while the earnout period is still running.
Do you qualify?
What makes the deal fundable mid-earnout.
An active ABN
You are trading the business under your own registration.
A specific asset
The equipment you are buying secures the loan.
The acquisition detail
How the earnout is structured helps the lender read it.
Established trading
History behind the business you bought can support the deal.
Why an earnout is workable
The asset secures it
Security in the equipment stands apart from the acquisition terms.
Lenders read handovers differently
Some weight the established business, others the asset and deal.
Low-doc keeps it moving
Finance can proceed while the earnout period is still running.
A real example
An operator who bought a transport business on a two-year earnout needs a $90,000 prime mover to service a new contract. His bank hesitated over the earnout terms. Placed with a lender that weighed the established route and secured the loan on the truck, it was approved before the earnout finished. Illustrative only.
Common questions
Frequently asked questions
Does an earnout stop me getting equipment finance?
No. The asset you are buying secures the loan, so the acquisition being on an earnout does not automatically block it.
What if most of the trading history is under the previous owner?
Some lenders will weigh the established trading behind the business, others focus on the asset and the deal. The right lender is matched to your situation.
Can I get finance before the earnout period ends?
Often yes. Low-doc options mean the loan can proceed while the earnout is still running.
Will the lender need the acquisition contract?
It can help. Showing how the earnout is structured gives the lender a clear picture and can support the application.