Acquisition finance
Fund your acquisition.Buy with confidence.
Most UK buyers blend equity, a commercial loan and optional seller finance. Know the stack before you offer.
Buyer funding hub
Plan funding before you offer
Practical guidance for UK buyers — structures, lender expectations and when to get terms lined up.
How UK acquisitions get funded
Structures vary by size, sector and asset backing. These are typical patterns, not rules.
Under £250k
Often funded from buyer equity, with a small vendor loan or asset finance top-up.
Typical split: 40–60% cash · 20–40% vendor deferral · balance from asset or personal lending
£250k – £1m
The classic SME stack: deposit, commercial loan and optional seller deferral.
Typical split: 25–35% deposit · 50–65% bank or specialist loan · 10–20% vendor finance
£1m – £5m
Blended debt with stronger diligence, often alongside an M&A adviser or broker.
Typical split: 30% equity · senior debt · mezzanine or vendor loan · working capital facility
£5m+
Structured finance, equity partners or search funds. Rarely a single high-street loan.
Typical split: Equity + senior debt + earn-out · specialist lenders · longer DD cycle
Your main options
Most buyers combine two or three of these. The right mix depends on the target, your deposit and the seller's flexibility.
Commercial business loans
High-street and specialist lenders lend against the trading business. Expect a 25–35% deposit, three years of accounts and a credible business plan showing you can service the debt.
Specialist acquisition finance
Lenders focused on SME deals understand asset-light businesses, vendor deferrals and management buyouts. Often faster than retail banking once you have heads of terms.
Government-backed schemes
Start Up Loans, British Business Bank programmes and regional growth funds can supplement equity for smaller deals. Eligibility varies by sector, location and buyer profile.
Asset-based lending
Stock, debtors, equipment or property can secure lending where cash-flow cover alone is tight. Common in retail, manufacturing and asset-heavy acquisitions.
Vendor / seller finance
The seller takes 10–30% of the price over two to three years, often tied to performance. Reduces upfront cash and signals seller confidence in the business.
Equity & search funds
For larger deals, private equity, family offices or search funds bring capital and governance. Expect minority or majority stakes and a longer process.
What lenders want to see
Having these ready speeds up approval and signals you are a serious buyer.
- Three years of filed accounts plus current-year management accounts
- Your CV and evidence of relevant sector or operational experience
- Proof of deposit and source of funds (AML requirements apply)
- A business plan covering the first 12–24 months under your ownership
- Cash-flow forecast showing debt service after the acquisition
- Details of the target: sector, lease, customer concentration, key staff
- Heads of terms or an accepted indicative offer (for formal applications)
When to arrange finance
Do not leave funding until after due diligence. The best buyers know their budget early.
- 01
Before you shortlist
Know your maximum all-in budget: purchase price, fees, working capital and a contingency. Speak to a broker or lender for indicative terms so you are not guessing.
- 02
Before you offer
Get a written indication of loan amount, rate band and key conditions. Most serious sellers expect buyers to have funding lined up before exclusivity.
- 03
After heads of terms
Submit the formal credit application. The lender will review accounts, your plan and the sale structure. Allow four to eight weeks for approval on typical SME deals.
- 04
At completion
Funds draw down to your solicitor on completion day. Budget separately for stamp duty (if applicable), legal fees, stock at valuation and day-one working capital.
Speak to a specialist directly
Dealdoor is a marketplace, not a lender. When you need real numbers, go straight to independent experts who arrange acquisition finance every week.
Acquisition finance broker
Independent brokers shop your deal across specialist lenders. Best once you have a target in mind and need indicative terms before you offer.
Tip: Look for brokers with a track record in your sector and deal size.
Commercial lender
Your bank or a specialist SME lender can give direct feedback on deposit, security and serviceability based on the target accounts.
Tip: Ask for an in-principle view before exclusivity, not just generic product brochures.
Accountant or corporate finance adviser
Helps you model the deal, stress-test cash flow and structure equity, debt and vendor deferrals in a way lenders will underwrite.
Tip: Useful early if you are new to acquisitions or the business has complex add-backs.
Keep building your deal plan
Pair funding insight with valuation tools, buyer guides and answers to common acquisition questions.