Every successful business deserves the opportunity to grow and expand by acquiring further companies, should they wish to. However, not every business will meet the acquisition finance requirements set out by traditional business banks.
Growth Lending can leverage against your own business’ sales ledger, or even against the book debts of the target company, to provide the funds needed to secure the purchase.
Raising acquisition finance in this way significantly increases business liquidity, leaving headroom within the facility to accommodate day-to-day working capital needs, as well as enabling purchases that would not otherwise be possible.
Acquiring another business can be a quick and efficient way to secure growth, but often requires more cash than a firm’s normal operating budget. Acquisition finance is the funding used specifically to purchase another business. There are a number of different funding structures that can be used to raise capital, including invoice finance and revolving credit facilities from Growth Lending.
Acquiring another business enables you to expand your company’s reach geographically and demographically, as well as streamline and increase your economies of scale. You can also strengthen your own position too, by purchasing a competitor or their assets.
Our facilities offer flexibility to our clients, to use funds for whatever they feel will best grow their business. This means that rather than having to apply for separate acquisition-specific finance, they can encompass acquisitions into the strategy for their existing facilities. This also means that businesses can borrow larger sums for multiple uses at once – for example, making a strategic acquisition, while also raising working capital.
We can fund against your own business’ sales ledger, in order to meet the price of acquiring another business.
We can fund against the book debts of the target company, which can be used to secure the funding in order to make the purchase.
One of our lending experts will contact you within 24 hours to get a better understanding of your requirements. We will then provide you with an indicative offer so that you can move quickly with the acquisition.
Once terms are agreed, we will underwrite your facility and provide you with a credit-backed offer.
Profitability: historically profitable (exceptions due to Covid-19 impact will be considered)
Solvency: solvent with healthy balance sheets, ideally with a history of retained profits
Support: supportive shareholders and investors
Strategy: a business plan or strategy to justify the acquisition – this doesn’t have to be a formal presentation, but we want to see your vision for growth