Business acquisition finance, clearly answered.

Business acquisition finance is structured funding used to purchase an existing business. It is assessed based on the cash flow of the target business, the deal structure, available security, the buyer’s profile and experience, and lender appetite — with the goal of aligning the funding to both the acquisition and the long-term performance of the business.

Unlike a personal loan or an overdraft, acquisition finance and loans is specifically designed to fund a business purchase — covering goodwill, assets, stock at valuation, and in some cases the property from which the business trades. We arrange acquisition finance and loans across the UK.

Deposit requirements vary depending on the business, available security, and lender appetite — typically ranging from 10% to 30% of the purchase price. Lenders expect buyers to have meaningful equity in the deal. Skin in the game, as lenders call it, demonstrates commitment and reduces their exposure.

Stronger businesses with stable earnings and additional security can reduce the deposit required — and in some cases eliminate it entirely. We have secured 100% funding for a healthcare business where the trading performance and security position were exceptional. Every deal is assessed on its own merits.

Yes. Specialist acquisition lenders will lend against goodwill where the trading history supports it. Strong businesses with stable earnings and demonstrable cash flow are preferred — lenders need to see that the goodwill is real, transferable, and sustainable under new ownership.

This is particularly important for leasehold deals where there is no bricks-and-mortar security and goodwill makes up the majority of the purchase price. The application has to be presented so the underwriter can see the sustainable, transferable earnings behind that goodwill.

The amount you can borrow depends on the business, its trading performance, the deal structure, and your own financial position. Lenders typically assess affordability based on a multiple of the business’s earnings — usually two to five times EBITDA for most sectors, and potentially higher for businesses with contracted or regulated income streams such as healthcare.

We arrange funding and work with you to find the structure that fits both the purchase and the longer-term performance of the business.

Full funding without a deposit is rare but not impossible. Where a business is highly profitable, has strong asset backing, and the deal is well-structured, lenders will sometimes go further than their standard criteria suggest.

We have secured 100% funding for clients where the strength of the business and the security position made a compelling enough case. Our role is to maximise the funding available while keeping the structure sustainable — because a deal that leaves the buyer overleveraged from day one is not a good outcome for anyone.

Seller financing — where the seller agrees to receive part of the purchase price over time rather than in full at completion — is almost always the most cost-effective way to buy a business. You pay a deposit on completion, then repay the balance from the business’s own cash flow over an agreed period, often at a low or zero interest rate.

Not every seller will agree to this structure, and it requires careful legal documentation to protect both parties. Where it is available and appropriate, we will always explore it as part of the overall funding structure.

Traditional acquisition lending is the next most cost-effective route — particularly where there is property security or a strong trading history that attracts competitive lender terms.

Where speed is critical — a seller requiring a fast exchange, a competitive situation, or a time-sensitive opportunity — secured bridging finance can complete in days rather than weeks. It carries higher interest rates and is a short-term solution, but it secures the deal while longer-term finance is arranged.

For leasehold businesses where there is no property to secure against, we have access to lenders who can move quickly on well-prepared applications. The key is having the information and documentation ready from the outset — which is where our preparation of the funding application makes a real difference to speed of execution.

Buying a business starts with defining your criteria — what type of business, what size, which area, and what budget. From there the process involves sourcing opportunities, assessing the financial performance of target businesses, completing due diligence, negotiating terms, arranging finance, and completing the legal transfer.

Most buyers underestimate the time and complexity involved — particularly the finance coordination and due diligence stages. Working with an experienced finance broker alongside your solicitor and accountant from an early stage reduces the risk of a deal falling apart late in the process.

The business buying process typically runs in six stages: identifying and screening opportunities; assessing the financial performance and risk profile of the target business; completing due diligence; negotiating the purchase price and deal terms; coordinating the finance; and completing the legal transfer.

Finance coordination — finding the right lender, preparing the application, and managing the process through to offer and drawdown — runs alongside and in parallel with the legal work. The two need to be synchronised carefully to avoid delays at completion.

Due diligence is the process of verifying that what the seller is telling you about the business is accurate. It covers the financial performance, the legal structure, the key contracts and relationships, the staff, the premises, and the regulatory position of the business.

Where asking prices are higher and competition for well-located businesses is strong, buyers sometimes feel pressure to move quickly. Cutting corners on due diligence is one of the most common and costly mistakes a buyer can make. A thorough due diligence process can identify problems that affect value — and in some cases justify walking away from a deal entirely.

Asking prices are set by sellers and their advisers, and they do not always reflect the underlying financial performance of the business. An independent valuation helps establish whether the price aligns with trading history, market multiples, and risk profile — and gives you a stronger negotiating position if it does not.

Where goodwill valuations can be substantial, understanding what you are actually paying for — and what lenders will lend against — is an essential step before committing to a price. Lenders will conduct their own assessment, and a significant gap between the asking price and the lender’s view of value can create a funding shortfall at a late stage.

Even well-prepared buyers make avoidable mistakes. The most common is over-borrowing — taking on more debt than the business can comfortably service leaves no room for a slow month, a market shift, or an unexpected cost. A deal that works on paper at maximum leverage can become very difficult in the first year of trading.

The second most common error is underestimating post-acquisition costs. Buyers often secure enough to pay the seller but forget that rebranding, staff changes, system upgrades, and the first few months of trading all have a cost. A 15% to 20% contingency buffer built into the funding request from the outset is not excessive — it is prudent.

Where purchase prices are higher and competition for good businesses is stronger, getting the funding structure right from the start matters more than ever.

To assess your funding requirements we need a clear picture of three things — the business you are buying, the deal structure, and your own financial position. That means the last two to three years of accounts for the target business, an overview of the proposed transaction, and details of your deposit, experience, and financial background.

We will tell you exactly what we need when we speak — and we will help you pull it together in a format that gives your application the strongest possible start. Our iLendi Six™ framework sets out the six areas every lender needs to understand before they say yes, and we build your application around each one.

Lenders assess acquisition opportunities based on the cash flow and profitability of the target business, the industry and its risk profile, the transaction structure, the buyer’s experience and capability, and the available security. Their focus is not solely on the purchase price — it is on whether the business can generate enough cash to service the proposed borrowing over time.

Location and asset quality are additional factors — well-located businesses with strong footfall or patient lists or contracted income tend to attract stronger lender appetite and better terms.

Adverse credit makes a funding application more challenging — but it does not automatically make it impossible. Some lenders will look past credit issues where other elements of the application are strong: the business has a robust trading history, there is meaningful security available, and the buyer can demonstrate relevant experience.

Where credit-related issues exist, we discuss them openly at the outset, identify what requires explanation, and determine the most appropriate lenders to approach. Transparency about credit history from the start is always better than a lender discovering it during underwriting.

Yes — and first-time buyers are a significant part of the market we work with. Lenders assess first-time buyers on the strength of their relevant experience, the quality of the business they are acquiring, and the overall funding structure. Relevant sector experience — even from employment rather than ownership — carries real weight.

Where a first-time buyer lacks direct management experience, appointing a strong existing management team or working alongside an experienced operator can strengthen the application significantly. We help first-time buyers position their application in the most credible way possible, and we know which lenders have an active appetite for well-prepared first-time buyer deals.

Yes — and it is worth planning for this from the outset rather than as an afterthought. Many lenders will fund refurbishment, rebranding, fit-out, or expansion costs alongside the acquisition, particularly where the capital investment adds demonstrable value to the business.

Where competition is strong and presentation matters, post-acquisition investment often makes the difference between a good business and an excellent one. Building those costs into the funding structure from the start is almost always more straightforward than arranging separate finance later.

Yes. One of the most common oversights in a business purchase is arriving at completion with enough money to pay the seller but insufficient cash to trade confidently from day one. Stock, staffing, supplier terms, and the gap before the first full month’s income all create a working capital requirement that needs planning for.

Where appropriate, we structure the funding to include working capital alongside the acquisition cost — so the business has what it needs to operate effectively from the day you take ownership.

Yes. All discussions are handled in strict confidence. In owner-managed businesses — where staff, customers, and suppliers may react to news of a sale — confidentiality is critical throughout the process.

We do not share any information about a prospective acquisition with lenders until you have authorised us to do so, and all lenders we work with operate under standard confidentiality obligations.

iLendi Capital is an acquisition finance and loans broker, not a lender. We prepare the funding application, take it to the funders most likely to say yes, and manage the process from first enquiry to the day you take ownership.

We work with a wide panel of specialist lenders across all business sectors and arrange funding nationwide. Our income comes from the lender on successful completion — not from charging you upfront fees.

There is no fee for an initial discussion. Our fees are success-based — agreed with you upfront and payable on completion of the funding. If we do not secure funding for you, you do not pay us.

For complex acquisitions in hospitality, healthcare, and professional services, using a specialist broker typically results in better terms, higher leverage, and faster execution than approaching lenders directly — which more than offsets the broker fee.

Yes. We work directly with a range of specialist lenders and funding providers, presenting your requirements effectively and managing the process through to approval and completion. We do not use intermediaries or sub-brokers — your application goes directly to the decision makers at each lender we approach.

Yes — and we actively encourage it. We regularly work alongside accountants, solicitors, and other advisers throughout the buying process. A well-coordinated professional team around a transaction reduces risk, avoids duplication of work, and significantly improves the likelihood of a smooth completion.

If you do not yet have a solicitor or accountant with business acquisition experience, we can suggest advisers who understand the process.

Yes. We regularly assist with more complex scenarios including mixed security structures, significant goodwill funding, management buy-ins, management buyouts, and transactions where a standard lending approach is not appropriate.

Complex deals require more preparation and more careful lender selection — but they are often where specialist broker expertise adds the most value. If you have been told a deal cannot be done, speak to us before accepting that conclusion.

Yes. We support buyers from the initial financial assessment through to completion — including valuation review, risk analysis, negotiation support, finance coordination, and guidance through the lender due diligence process. Our involvement does not end when the lender issues a formal offer. We stay with the deal through the legal process and work alongside your solicitor to ensure funds are released and the purchase completes on time.

Yes. Our sister brand Hammer Ready specialises in finance for assets and business property bought at auction, including pre-approval before you bid.

See our Buying at Auction guides for what to check first.