Typical Percentage of Vendor Financing in Australian Small Business Sales
Typical Percentage of Vendor Financing in Australian Small Business Sales
What percentage of the sale price is typically covered by vendor financing in Australian small business deals, and is it becoming more common?
3 Answers
In Australian small business transactions, vendor financing typically covers around 10–30% of the sale price. It is gradually becoming more common, especially for buyers with limited access to traditional lending, as it helps facilitate smoother deals.
In Australian small‑business deals, vendor financing (seller financing) typically covers around 20 %–60 % of the sale price, with many arrangements clustering between 30 %–50 % of the total depending on the buyer’s deposit, cash flow and risk appetite of the seller.
In Australian small business sales, vendor financing typically covers about 10 %–30 % of the sale price, depending on the deal, industry, and buyer strength. It is becoming more common as sellers seek to broaden the buyer pool and support smoother closings. While helpful, buyers should assess repayment terms carefully to balance risk and cash flow.