Do You Lend On Larger Takeovers, Mergers & MBOs?
Yes, we can fund much larger acquisitions, mergers and MBOs (Management Buyouts) but this type of funding is quite different to smaller business purchases. We can fund large acquisitions on a bespoke funding basis.
You can find out further details on our offering by talking through your circumstances with one of our advisers.
Advantages Of Buying An Existing Business
There are a number of advantages to buying an existing business rather than starting a new one – here is a look at the pros and cons of this approach:
- Buying a profitable business means you will be able to enjoy immediate income and cash flow
- Established trading businesses will have an existing customer base to market
- Processes and supplier lines will already be in place and operating well
- You can be secure in the knowledge that your business is profitable and has suitable demand
- A strong reputation will stay with the business
- You will pay a premium for a strong business
- There is a danger that some customers may no longer work with you once the previous business owner has moved on
- Any previous reputation or customer service issues will become your problem
- You will be bound by any contracts agreed to by the previous owner
- Staff may be resistant to a new way of doing things
What Information Do I Have To Provide?
When applying for a loan to buy a business, you will need to provide certain information to the lender to enable them to make a lending decision. Although the exact documentation needed will vary from application to application, the lender will usually need the following:
- A fully completed application form
- Financial projections outlining expected future trade
- Two years’ accounts for the business
- Six months’ personal bank statements
- A CV detailing any relevant experience
- A detailed business plan
What if There Are No Assets?
Unsecured business purchase loans are designed to be taken without security. As such, although applications where the business has a strong asset base are desirable, it isn’t crucial. If you’re looking to buy a business with no assets, let us know and we may still be able to fund it.