An asset that has highly appreciated and owned in joint names can cause a challenge when it comes to IHT planning. Here we take a look at some careful IHT planning we assisted a client with in relation to a jointly owned asset.
Acquiring a Business with No Capital? How Specialist Lending Made It Happen
Business Advisory
Our client had the opportunity to acquire a profitable service-based business generating £80,000 a year in profit.
A no-brainer? Almost.
The Challenge
They had no capital to invest, and their existing business had no assets to secure lending.
With high street banks unwilling to fund 100% acquisitions, especially with no security, this route seemed like a non-starter.
Why Traditional Lending Wasn’t an Option
- No business assets to secure the loan
- Limited surplus cash in the existing business
- Banks unwilling to fund 100% acquisitions
- Shareholder changes ruled out most commercial funding options
The Solution: Specialist Finance via a Broker
We referred the client to our in-house Xeinadin finance team, who were able to source a lender willing to take a flexible approach.
The chosen lender:
- Funded 100% of the acquisition
- Was comfortable with a service-based business
- Allowed early repayments and overpayments
Yes, the interest rate was high at 18% but it was the only viable route, and crucially, it made financial sense.
What Made the Deal Stack Up
Through due diligence and a closer review of the target company’s accounts, we identified an additional £40,000 in consultancy fees that would no longer apply post-acquisition.
This pushed projected profits up to £120,000 enough to:
- Easily cover loan repayments
- Improve future business value
- Clear the finance within 5 years
Why This Finance Worked
Unlike rigid bank lending, the solution:
- Required no deposit or personal guarantees
- Was tailored specifically for acquisitions
- Offered flexible repayment terms
Local Insight, National Reach
Many specialist lenders operate through regional funding hubs and aren’t directly accessible to business owners.
Our corporate finance team has the expertise to identify the right lenders, build a strong funding case, and secure the deal.
We work closely with them to ensure our clients experience a smooth, supported process from start to finish.
The Result
The acquisition was successfully completed with 100% external funding and no upfront capital or personal security required.
Finance was arranged quickly, enabling a smooth transition and giving the new owner flexibility to overpay or repay early.
Getting in touch with us
Acquiring a business can be a powerful way to grow your existing one.
But funding is often a hurdle that traditional lenders won’t help you overcome with no capital.
All is not lost—there are options available.
If you’d like to explore what’s possible, get in touch and we can introduce you to our corporate finance team.
Call us on 01634 731390 or request a call back today.
Our services
If you would like to find out more about some of our services that might help you please take a look at our related pages:
