Decision in Principle: What Lenders Look For

What lenders will require

Lenders assess the target business to understand its historic trading performance. They will typically require the last two years of certified accounts, recent management accounts, corporation tax returns, and business bank statements. Where the purchase includes a property, a property valuation and building survey will also be required.

How we strengthen your application

Beyond the documents, we prepare supporting information that highlights the business's achievements, financial stability, and any recent developments that explain its current performance, future trends, and prospects. A strong application does not just present the numbers — it tells the story behind them.

What lenders will require

A comprehensive business plan is an essential part of every funding application. Lenders want to understand why you are buying the business, what your plans are after takeover, how the business will be managed, and how the borrowing will be repaid. They will expect realistic financial forecasts alongside the plan itself.

How we strengthen your application

We review every business plan before it goes to a lender — providing an independent second opinion, identifying anything that may require further explanation, and suggesting practical refinements. A business plan that anticipates the lender's questions is significantly more likely to generate a confident response.

What lenders will require

Lenders need confidence that the business will be managed successfully after the change of ownership. They will want to understand your career background and the experience of your proposed management team.

How we strengthen your application

We present your experience and background in the context the lender needs — together with details of the target business's management team, staff structure, and operational processes. Our role is to demonstrate that you have the leadership, experience, and capability to build on the business's existing strengths and deliver the objectives in your business plan.

What lenders will require

Most business acquisitions require the buyer to contribute a deposit towards the purchase price. The amount varies depending on the type of business, the lender's requirements, and the overall funding structure — typically ranging from 5% to 30% of the purchase price.

How we strengthen your application

Where the required deposit is challenging, we explore ways of strengthening the overall funding position. This may include raising capital against an existing business, releasing equity from property, refinancing other assets, or structuring seller finance into the deal. We work with whatever deposit position is available.

What lenders will require

Lenders examine both your personal credit profile and the target business's credit history. They review payment history, outstanding borrowing, and any adverse credit information to assess how financial commitments have been managed. This is an important part of the underwriting process — but it is only one of several factors considered.

How we strengthen your application

Where credit-related issues exist, we discuss them with you, identify anything that requires explanation, explore possible solutions, and determine the most appropriate funding approach. A difficult credit history is rarely a barrier when the rest of the application is strong and the issues are addressed directly.

What lenders will require

Some acquisitions require security to strengthen the overall funding application. This depends on the nature of the business, the funding structure, and the lender's assessment of risk. Security may include property, personal guarantees, fixed and floating charge debentures, or share charges.

How we strengthen your application

We discuss security requirements with you, explain what the lender is asking for, and explore the available options. Where appropriate, we negotiate with lenders to find a practical balance between the security required and the overall strength of the deal.