Buying Out a Business Partner? Urgent Short Term Loans to Complete on Time
Pay your departing partner on the agreed date, and refinance once ownership has changed
Experts in strategic, short-term finance
When a partner or shareholder leaves, the agreement often sets a date for paying them out, and the bank may not be ready by then. We can fund the buyout in as little as 24 hours.
We fund partner and shareholder buyouts for businesses across Australia, from $250,000 to $10 million. The loan is secured by property, never by the shares or the business, and the continuing owners repay it once the business is refinanced under its new ownership.
Why a bank may not be ready in time
- •A change of ownership means the bank reassesses the whole business
- •Much of the buyout price is often goodwill
- •Existing bank loans may need the bank's consent to the change
- •A dispute between partners makes some banks cautious
- •The agreement allows less time than the bank's process needs
Buyout deadlines we fund
- •A completion date under a shareholders' or partnership agreement
- •A put or call option that one partner has exercised
- •A settlement date in a deed resolving a dispute between partners
- •A retiring partner's agreed exit date
- •Pre-emptive rights that lapse if the remaining shareholders do not buy by a set date
Your agreement comes first
For a partnership, business.gov.au notes that a partnership agreement should cover what happens when a partner leaves. Your lawyer can advise on the agreement and the transfer, and we provide the funds.
Completing a buyout
Enquiry. Send us the agreement or the notice setting the completion date, the buyout amount and the property you can offer. Indicative terms are usually ready within hours.
Valuation. Our valuers assess the property offered.
Letter of offer. The continuing owners accept the terms and sign.
Completion. Funds are available for completion within 24 hours of signing.
Documents for a buyout loan
- •The shareholders' or partnership agreement, and any exit notice
- •The agreed buyout price
- •Details of existing business loans, and whether the bank must consent to the change
- •The property you can offer
- •Your refinance plan
Loans for a partner buyout
- •Second mortgage: behind your existing bank loan, so it stays in place
- •First mortgage: to refinance the group's loans and add the buyout amount
- •Caveat loans: for a completion date that is days away
- •Secured business loans: a lump sum for the buyout price
Terms for a partner buyout
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. (first mortgage), from 11.95% p.a. (second mortgage) |
| Term | 1 to 24 months, interest only |
| Maximum LVR | 70% of the property value, including any existing mortgage |
| Security | A first or second mortgage over property owned by you, the business or the continuing owners. Never the shares |
| Settlement | From 24 hours |
After the buyout
The loan is usually repaid by refinancing the business to a bank once the ownership change is complete, by selling a property, or by selling a property. Where the departing partner agrees to take part of the price later, that reduces the amount you need to borrow from us.
Buyouts we have funded
“When partners agree a buyout, the completion date is usually fixed in the agreement or a deed. We value the property the continuing owners can offer, not the business, so there is no wait for a bank to reassess the company. Send us the agreement and the property details, and we can tell you quickly whether the date is achievable.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Case Studies
$400K Second Mortgage Repaid in Full After a Flexible Two-Month Extension
$1.8M First Mortgage Releases $980K of Working Capital for a Solar Business
$2.3M Second Mortgage Refinances an 18% Facility for a Glass Manufacturer
$800K Bridging Finance for Simultaneous Property Transactions in 48 Hours
$300K Second Mortgage for Dental Practice Working Capital in 5 Days
$700K Working Capital for a Technology Start-Up Settled in 72 Hours
$3M Working Capital for IT Business Expansion Settled in 2 Business Days
$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.