Business Acquisition Loans
Access the commercial finance you need to buy a business in the UK
What is a Business Acquisition loan?
There are financial products available to those interested in buying a business. Examples include asset finance and leveraged buyouts, the latter being the finance vehicle used by the Glazer family to purchase Manchester United.
These commercial finance solutions enable potential buyers to access the funds necessary to complete the business purchase, without needing to provide the whole amount upfront. Instead, collateral is offered as security against the loan. In certain circumstances, this collateral is provided by the business being purchased, rather than the buyer putting up personal collateral.
Our Finance Solutions for Business Acquisition
Mill Wood Finance helps businesses to access asset finance solutions
Since 1999 we have been helping UK businesses to access asset finance solutions.
The affordability and suitability for your business will vary greatly depending on a number of factors, including your credit history and business case for the loan application. Sifting through all of the various asset finance solutions on the market isn’t necessarily the best use of your time.
That’s where we come in.
We have an intimate understanding of the different options on the market, as well as having enviable connections within the commercial finance industry that enable us to access premier rates on behalf of our clients.
If you are seeking asset finance to help fund the purchase of a business, we are here to help. Not only do we have access to asset finance solutions not available on the high street, our team have expertise in writing a compelling business case to submit to the lenders. This business case is a realistic, trusted review of your business strengths and weaknesses that helps the lender to understand your loan request.
The process of using asset finance to purchase a business
- You can use the assets of the business as collateral, helping to secure the asset finance loan needed to purchase the business. By unlocking a potential asset finance loan, you can reduce the need for a large upfront investment, and instead spread it over more manageable monthly repayments.
- If the business you are looking to purchase has significant accounts receivable, invoice financing can unlock the cash tied up in these unpaid invoices in certain circumstances. This provides immediate liquidity, helping to manage the post-acquisition operational expenses.
- If the business has specific equipment that is of high value, you can use asset finance specifically for the acquisition of these assets separate to the purchase of the business as a whole.
- If the business has already paid off some of its assets, you could explore refinancing them to release equity, which could be put towards the acquisition cost of buying the business.
- Your asset finance repayments may be tax deductible, depending on the financial arrangement. Make sure to receive independent, specialist advice from your accountant regarding this.