Commercial Purchase

  1. Home
  2. Commercial
  3. Commercial Purchase

Buying an existing business

Whether you are getting into running your own business for the first time or an experienced entrepreneur buying an established business can be extremely attractive.  An established will have none of the usual set up costs, a track record for trading figures, and an established reputation and goodwill.

The drawback to purchasing an existing business is that lenders will only give a commercial mortgage against the bricks and mortar value of a commercial property, and not against its profits or its goodwill, so you will have to advance a large portion of the capital yourself or from other sources.  It is important to note that if you are buying your first business then lenders will want you to demonstrate your experience and credentials in the same industry as the business you’re interested in buying.

Ways to raise additional capital towards a business purchase

  • Secured loans: You can raise any shortfall against properties already owned, either with a re-mortgage or a second charge loan (this can be either your own home or investment properties). This is an attractive option as the loan term can be extended much further than an unsecured loan which reduces your monthly costs.  Secured loans are also typically available at lower interest rates than unsecured finance.
  • Asset and invoice finance: If you own another business then it’s possible to raise additional funds against your existing business’ equipment, machinery, and inventory with asset finance, or against your current debtor book and invoices due in the form of invoice finance.
  • Unsecured loan: Securing unsecured funding through banks can be difficult when buying a business. Typically, this will only be available when buying a well-established business with a proven track record, and if you have a strong CV in the same industry.

Morgan Financial Solutions work alongside a number of trusted partners and master brokers in order to source the most suitable deal for you.  After an initial consultation, and with your permission, your details will be passed to the master broker who can best fulfill your needs and they will guide you through the process to completion.

Menu