Funding to buy existing business

[KTA044]

I am looking for a loan to purchase an existing business. I have agreed a deal with the current owner and have everything in place, unfortunately i was let down at the last stage by a finance provider so I'm looking for alternative lenders but i am finding it extremely difficult to find another funder that can help, below are a few details to give you an idea of my situation -

I am needing to borrow £35,000 over 4-5 years.
I do not own my own home or have any property to use as security.
The business has been successfully running for over 5 years.
Turns over £140,000 a year.
I have access to bank statements and accounts for the past 5 years.

I have tried crowd funding, funding circle, banks and many more but have been unsuccessful.

If anyone has any advice or knows of any lenders that could help, It would be extremely helpful.

Many thanks

 

[STDFR33]

What about seller finance?

 

[Daugela]

Have you tried capitalise.com? They are a great source of different lending providers and the team behind is also very approachable, here is a link: www.capitalise.com/1522261717

 

[The Byre]

I would be looking at seller finance as suggested by @STDFR33 (I bet that's not his real name!)

The seller has the most to gain from the deal going through and no doubt will want existing staff to continue to live full and happy working lives!

You could offer him a simple bank loan countersigned by the seller, with an agreement that the business reverts fully back to him if you fail to meet payments.

 

[KTA044]

I have enquired about seller finance, but unfortunatly he is only prepared to do this with £25,000 up front, which i would need a loan to get to that amount.

 

[KTA044]

Thanks Daugela, i haven't tried capitalise before but seems great so far thanks!

 

[Mr D]

Getting turned down by a number of lenders in a short space of time can apparently have an impact when other lenders look at the credit file.
When lenders won't lend then common approach is friends and family.

 

[Lee-finance]

Hi there, i can have a look at this for you. drop me an email to discuss.

 

[Mark T Jones]

Look at Start Up Loans. Capitalise won’t help you.

Also, potentially you can raise finance against book debts or hard assets in the business.

 

[Gordon - Commercial Finance]

Any ideas why you were turned down by the lenders you have approached? Do you have a poor credit history yourself?

 

[nelioneil]

Any ideas why you were turned down by the lenders you have approached? Do you have a poor credit history yourself?

The lack of asset security (e.g. not owning a home) is one certain red flag.

 

[Toby Willows]

You may just have to accept you can’t afford to buy the business and get on with life. Not putting in any of your own cash isn’t going to help either, probably why you keep getting knocked back.

 

[Neil Lukins]

As Mark T has mentioned above you could go down the Start Up Loan route which will provide up to 25k per director. The business does not necessarily need to be a start up, just that the owners have to be in charge for less than 24months which you will be.

You could then use some of the other assets in the business if these are being transferred over to generate the additional funding. Invoice Finance and Asset Finance are two ways to generate additional capital.

If you have a guarantor we could also find you the funding.

Happy to help with Start Up Loan, Asset Finance and Invoice Finance, Standard loan.

Just DM us if you are interested and we can help offline.

Neil
All Star Funding Solutions Limited