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• 25 Mar

  Getting Financing To Buy A Business

  Buying an existing business is a great way to grow an existing organisation or to get started in business.

  However, getting financing to buy a business can be difficult in the UK, especially if you don't have a track record or other assets to use as security for the financing.

  Getting Financing To Buy A Business

  If you are struggling to find the money you need to buy a business, we may be able to offer a solution. FundInvoice has helped many UK companies use the assets of the target business to help finance its purchase: Financing a business purchase using invoice finance.

  To get financing quotes immediately, without any obligation to proceed and in confidence, just complete the following form:

  COMPARE QUOTES NOW

  Understanding Your Financing Options

  It is important to understand the financing options available to you when buying a business. In the UK, prospective business buyers have several avenues to explore and we have produced a list of all the financing options that could be considered. That list is of business funding options rather than raising the money personally.

  Of those options, several may be better suited to buying a business, including:

  Commercial Loans

  Traditional bank loans and those from independent lenders remain a popular choice for many. Lenders may be able to offer structured financing solutions tailored to your purchase plan. However, approval often hinges on a strong business plan, a solid credit history and tangible assets to support the lending.

  Seller Financing

  An often-overlooked option, seller financing involves the seller of the business providing a loan to the buyer. This can be a flexible and mutually beneficial arrangement, especially if traditional financing proves challenging to obtain. However, this is not available in most circumstances as the seller often wants a clean exit from the situation.

  Private Investors and Venture Capital

  For those looking to purchase a particularly promising business, private investors or venture capital firms may be interested in providing funding in exchange for equity. This route can offer significant capital but requires a compelling business case and a willingness to share ownership.

  Asset Based Financing

  Using the assets of the target company or a buyer's other businesses may help raise the financing to buy a business.

  See this case study: Using Invoice Finance To Fund A Business Purchase

  Getting Financing To Buy A Business In The UK

  We hope that the points mentioned above have clarified some of the options. We would be happy to speak to you about how best to go about getting financing to buy a business in the UK, just call us in confidence on 03330 113622.

  By Glenn Blackman