loan to buy a business uk

Business loan to buy a business

loan to buy a businessPurchasing an existing business can be an extremely rewarding time. Not only will you have your own ideas on just how you’ll transform the company, whether it be changing its image, rebranding it once you take over, or throwing in a complete overhaul of its current policies, you’ll want to make it your own.

Of course, this is only possible if you have the funding to do so, whether you need some help purchasing it, or making the changes you’ve dreamed about once you’ve purchased it, here at PDQ Funding we can help you accomplish your goals.

Purchasing an existing company has many similarities to starting up your own, though the key differences present themselves financially. Not only will you need a lump sum of cash to purchase an already existing business, you’ll need extra funding to make the necessary changes once you own it, to allow it to coincide with your vision.

Finance and loans for purchasing businesses

As the hopeful buyer of a pre-existing company, you have a number of finance options available to you. It is important you carry out the correct amount of research while weighing up your options and carefully selecting the best available one for your own unique situation.

Our business cash advance option is suited to businesses of all sizes, so whether you are looking to buy a small or large business, you won’t be let down by our product. Our Business cash advance is an alternative unsecured business loan, which means it’s a flexible funding option for you, and has no requirement to secure any personal or business assets against the loan.

Our cash advance calculates how much you can borrow by factoring in the monthly credit and debit card transactions of the business you’re looking to buy. The percentage of each future card sale that is repaid to your lender is agreed prior to the conduction of the loan. This means you’ll know exactly how much you’re going to have to pay back with each sale, plus you’ll know that you only start the repayments once you’re making sales.

The simplest way of looking at it is that if your newly bought business has a slow sales week, you’ll repay less. Therefore, you won’t be under the constant pressure of attempting to reach a certain amount of profit each week. There are no hidden costs or fees, so you won’t be on the receiving end of a nasty shock once you take out a cash advance with PDQ Funding.

  • Get £5k to £200k within 24 hours
  • Pay back through your future card sales
  • Unsecured – there’s no worries
  • Same day funding to your business 

Your business is eligible for a merchant advance if you meet the following criteria:

  • The business you want to purchase is registered in the UK
  • It has been trading for at least six months
  • The business has credit and debit card transactions of £5,000 per month or more

Documents Required to Apply

The following documents will be requested by your business manager once the online application has been completed. Please have the following documentation available:

  • 6 months of merchant credit card sales statement 
  • 3 months of business bank statements
  • You should contact the seller of the business to gain this information

Loan to buy a business

PDQ Funding offer unsecured business loans that will allow you a lump sum of money to see through the purchasing of an existing business. Some lenders that offer loans to hopeful buyers, often require a personal guarantee. This legal status of a personal guarantee is there so if your business was to default on loan repayments, you as the business owner becoming personally liable for paying back the money.

The most traditional form of lending within the retail sector is a bank overdraft, although for larger amounts with longer repayment periods, most retailers will opt for secured loans. These types of loans are commonly available from banks and other traditional lenders and will usually require a strong financial history. The small business loan will generally provide low fixed interest rates, with repayments set at equal amounts which are repaid each month for a set period of time.

The criteria between lenders varies significantly but in general but lenders will be looking to loan to businesses with a strong financial record and an excellent credit rating. PDQ Funding interest rates are comparable with an overdraft and the repayment terms will be dependent on your business structure.

Our quick four bullet points on things you need to know about our unsecured finance:

  • Applications can take just 10 minutes to receive a lump sum of £5,000 – £200,000
  • Repayments are to be made every month at a set interest rate
  • The loan is unsecured, but you may be asked to sign a guarantee
  • If you do not hold a great credit score, you can still be accepted

We understand that the high street is ever changing and businesses can have a difficult time keeping up with the new demands of the retail sector. So a retail loan may just be what you need to support your business, and even help it to take the next step. The application for a quote only takes a few minutes of your time, and a decision will most likely be made on that same day. This means that the money can be released to you, in most cases, within five days of you submitting your application.

Advantages of Buying an Existing Business

There are a number of advantages to buying an existing business rather than starting a new one. Here is a look at the pros and cons of this approach:


  • Buying a profitable business means you will be able to enjoy immediate income and cash flow
  • Established trading businesses will have an existing customer base to market
  • Processes and supplier lines will already be in place and operating well
  • You can be secure in the knowledge that your business is profitable and has suitable demand
  • A strong reputation will stay with the business


  • You will pay a premium for a strong business
  • There is a danger that some customers may no longer work with you once the previous business owner has moved on
  • Any previous reputation or customer service issues will become your problem
  • You will be bound by any contracts agreed to by the previous owner
  • Staff may be resistant to a new way of doing things

If you have purchased a business and need funding for other areas

We’ve helped thousands of businesses just like the one you’ve purchased; get the funding they need for:

  • Training new staff
  • Purchasing new stock or equipment
  • Refurbishing premises
  • Relocation
  • Advertising
  • Helping with cash flow
  • Building a new website

The existing business loan or cash advance can be used for many different purposes. You may wish to use it to help fund the purchasing of an existing company, or if you’ve already bought an existing business you may look to other areas: invest in new stock, move your business to a new location, or help to cover your payroll costs, it’s entirely up to you. You can apply for a free no obligation quote today and find out if your business qualifies for our services.

How to apply for a pre-existing business purchase loan

Step 1:

Visit our application page and provide the relevant information. This will ensure that we match you with an ideal lender. We will then ask you for further information about your business. You’ll need to be ready to tell us the following:

  • The name of the business you wish to purchase
  • How long it’s been in business
  • The average monthly card sales
  • The amount you are looking to borrow

Step 2:

Will will then require a few personal details, so please be ready to tell us:

  • Your title, along with you first name and surname
  • Position you will hold within the business you’re seeking a loan to buy
  • Email and telephone number, so that we can stay in further contact with you

Step 3:

Read through our terms and conditions carefully, and if you’re happy to continue, click ‘get a quote’. From here your application will be processed and reviewed by a member of our business finance suppliers team, who will help you find the correct lender for your emergency business loan.

Step 4:

We will then be in touch with you to confirm the conditions of your business loan agreement.

Step 5:

Once the application is complete, it will be sent off and approved by a lender. You can then have a discussion with them regarding the terms of the loan. These terms will include interest rates, as well as how much the borrower will repay each month. The loan is then provided to you on an agreed and transparent basis. As a leading business cash advance lender we are happy to help with the purchasing of existing businesses with business loan alternative lending product.