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How to finance a new business acquisition in the UK?

A Business Acquisition Loan is for the purpose of purchasing another business and will allow business owners or investors to access to funds they need to purchase the business as well as start up funding.

Using Acquisition Finance to Fund an Acquisition

Acquisition funding is becoming more popular for investors and business owners as it’s leaving them with more working capital for future business opportunities and working capital for day to day operations.

The process of applying for business acquisition finance will involve submitting supporting documents such as your experience, the purchase price of the business you are buying, business accounts (and much) along with a credit check on the business and/or the individuals who are buying.

Why use a broker for Merger and Acquisition Funding?

One of the main benefits of a broker is that they have access to a panel of lenders and do all the hard work on your behalf, contacting and speaking with lenders directly and a strong understanding of lender’s criteria and their preferred industry, sector and business type.

Finding the right commercial finance broker is essential, they will have knowledge of which lenders to approach and how to support your acquisition. We believe that this is summarised well by one of our clients: “Mike has been instrumental in getting our acquisition over the line. Mike was among a list of 28 brokers I spoke to over a 2 week period and while everyone else was sending me finance options with interest rates 19% over base rate or 15% fixed over 2 years with a personal guarantee and 50% deposit.

Mike rolled in with 9% interest over 6 years with no personal guarantee from a high street bank along with a few other options equally as good. Incredible stuff.”

What can I use Acquisition Finance for?

A business acquisition loan can support acquisition costs such as:

  • Purchase price
  • Professional fees
  • Legal fees
  • Restricting costs
  • Property costs

What other types of finance facilities are available?

As well as acquisition finance, there are more finance options available to support partial business purchases or for day to day operations of a business.

Business Loan A business loan can be used to help raise finance to cover legal costs, refurbishment, equipment purchases and an injection of working capital to support cash flow. 

Asset FinanceHire Purchase or Leasing options for the purchase of large equipment and machinery and commercial vehicles but also can be used for furniture, laptops, security equipment (and much more).

Invoice Finance This is a way of lending money based on what customer invoices are outstanding from your business.

Commercial Mortgage – A commercial mortgage can be used to buy business premises, secure land for development ventures, expand an owner occupied business, expand your buy to let portfolio and raise capital on commercial premises you already own.

Get in touch for Acquisition Finance

If you’re looking for acquisition finance, don’t hesitate to get in touch with our team for a no-obligation discussion about your acquisition and merger requirements. Get in touch with our team today on 01270 443510 or complete our enquiry form.

Address

Amplo Group
11 Mallard Court, Mallard Way,
Crewe, Cheshire, CW1 6ZQ

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