Yes. Distressed competitor sales, pre-pack acquisitions, and asset auctions move on tight timescales — sometimes days. Traditional finance rarely keeps pace. Short-term business lending lets your company act quickly, securing plant, stock, client lists, or intellectual property before a rival does.
What kinds of assets are companies buying this way?
- Physical plant, machinery, or specialist equipment
- Finished stock or raw-material inventory at below-market prices
- Customer contracts or databases (where legally assignable)
- Brand names, domain names, or registered trademarks
- Leaseholds, fit-outs, or premises fixtures
Speed is usually the reason
Asset purchases from distressed businesses often come with a tight payment deadline set by an administrator or liquidator. A Credicorp Business Loan — a fixed sum over a fixed short term — fits naturally: borrow what you need to complete the purchase, then repay from the cash the newly acquired assets generate, or from a longer-term refinance once ownership is established.
What to think about before applying
Run basic due diligence even under time pressure: check for encumbrances on equipment (finance agreements that transfer with the asset), verify title is clean, and confirm any contracts are legally assignable. Overpaying in haste erodes the margin that funds repayment. If the acquisition is phased — a deposit now, balance on completion — discuss the structure with us at application so the drawdown schedule can match.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Bridging an R&D tax credit refund with short-term finance, Covering a bad-debt shortfall with a business loan.