Finance question
Can I get finance to buy a restaurant?
Often yes, but expect to put in a large share yourself. Lenders treat restaurants as higher risk than most business purchases: CreditorWatch measured a 12.03% closure rate for cafes, restaurants and takeaway businesses in the 12 months to July 2026, against 6.69% across all industries. One published restaurant lending page lists up to 50% of business value for a leasehold purchase, subject to lender assessment.
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The short answer
A restaurant is priced on profit and lease, not on seats
A restaurant is priced on the profit left after the owner is paid, not on how full the room looks. Brokers value the business at 1.5 to 3 times adjusted net profit, and asking prices follow it: a 40-seat Adelaide CBD noodle restaurant asks $200,000 plus stock, while a managed bar and restaurant south of Perth with $642,926 of adjusted net profit asks $1,550,000. Live listings run from about $140,000 for a fitted corner restaurant to $1.55m, and Bsale's average asking price is $395,336 (restaurant buying guide). The price is then split between goodwill, plant and equipment, and stock, and that split decides which lender funds which part.
That closure rate is why lenders lean on three things: the profit, the lease and the owner. A restaurant depends on its chef, its staff and its landlord, and goodwill is thin security because it can fall away when any of them leaves. The lease matters most. Lenders weigh the committed term, not the options, against the loan term, so a 5 plus 5 year lease with under three years committed can mean a short loan or none. Benchmark Business Sales says buyers typically want at least five years left, and a lender will want the loan term to fit inside what remains.
The purchase is normally funded in layers. A business acquisition loan covers part of the goodwill, equipment finance covers the plant against the gear itself, and you fund the rest from savings or from a property-backed loan on your home or another property, where the lender relies on the property rather than the restaurant. The catch is that the property is at risk if the restaurant fails. 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. If you are building a new site rather than buying a trading one, see fit-out finance.
Do you qualify?
What a lender checks on a restaurant purchase.
Profit that reconciles
Two to three years of financials that tie to lodged BAS and bank statements.
A lease with runway
A committed term at least as long as the loan, with landlord consent in hand.
Hospitality experience
Ideally running a similar venue, plus a handover that holds the profit when the vendor leaves.
Cash and security
Savings, plus property or equipment you can offer to cover the gap.
Why a restaurant purchase is built in layers
Goodwill carries the most risk
A lender funds only part of it, so this is where your own cash goes.
Plant is funded on resale
Used kitchen gear is valued at what it would resell for, not the vendor's allocation.
Property can close the gap
A loan on your home or another property can fund the rest, with that property at risk.
A worked example
A buyer agrees $300,000 for a restaurant earning $120,000 adjusted net profit, or 2.5 times. A lender advancing up to 50% of business value puts in up to $150,000. The buyer covers the other $150,000, plus $25,000 of stock, $12,000 of legal and licence costs and a $40,000 wages buffer: $120,000 from savings and $107,000 secured on their home. Illustrative only.
Common questions
Frequently asked questions
How much of a restaurant's price will a lender fund?
It varies by lender and by file. One published restaurant lending page lists up to 50% of business value for a leasehold purchase, so plan on funding the other half yourself, plus stock, costs and working capital. Other lenders differ and some will decline.
Does the length of the lease affect the loan?
Yes. Lenders compare the committed term of the lease, not the options, with the loan term. A short lease can mean a lower price, a shorter loan or no loan, so ask the landlord in writing what term you would take on.
Do I pay stamp duty and GST when I buy a restaurant?
It depends on the state and the contract. Queensland charges duty on goodwill, plant and trading stock, while Victoria charges nothing on goodwill. A going concern sale can be GST-free when the ATO conditions are met, otherwise 10% GST applies. Confirm both with your accountant before you sign.
When does the liquor licence transfer?
Not on settlement day. In NSW provisional approval is usually given within ten business days of a complete application and confirmation within 60 days, and in Victoria you should apply at least 8 weeks ahead. Ask your solicitor to make settlement conditional on the licence transfer and landlord consent.