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  • Writer's pictureMatt Bowler

Using Asset Based Lending To Fund Business Acquisition

Updated: Aug 10, 2023

In this series of posts we look at ways to leverage current assets of the business to fund your buy out



Your ability to finance the deal will be at the top of your agenda if you're considering buying another company or buying the company you presently run from its current owners.


There might be some cash involved, but what other kind of loan is the most practical? To find an appropriate solution, we advise looking at the assets of the acquiring firm or your current business.


Based on a company's assets, asset-based lending makes use one or more of the assets the business already has, making it potentially more efficient and economical than looking for unsecured financing independently. This week we will look at property and land:


Assets (such as vehicles and machinery)


Simply said, your business might have assets that are either free of debt or partially financed. Typically, lenders will lend up to 70% of the collateral's current value, minus any outstanding debt.


Asset refinancing is unlikely to be enough on its own to pay the entire business acquisition, but similar to stock funding, it might make a significant contribution to the overall capital you need.


To find out more please get in touch with matt@knightsrow.co.uk

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