Buying another business, a book of customers, or a set of trading assets is one of the fastest ways to grow — and one of the most front-loaded. The consideration, the legal and due-diligence fees, and the working capital the combined business needs from day one all fall due around completion, well before the acquisition has earned anything back. For a UK limited company or LLP making the purchase, a Credicorp facility can fund part of that opening phase so a sound deal is not held up purely by the timing of the cash.
What this is — and what it isn't
This is bridging and working-capital support for an incorporated buyer, not full acquisition finance. Credicorp is an unsecured business lender: we do not take security over the target's shares or assets, we do not take a debenture, and we do not structure leveraged or deferred-consideration buy-outs. So a Credicorp facility is best suited to funding a slice of the price, the deal costs, or the post-completion working capital — not to financing the entire purchase of a sizeable company. If you need senior secured acquisition debt, that comes from a specialist lender; what we can do is sit alongside your own funds and ease the cash pressure around the transaction.
What the funding can cover
- Part of the consideration for a smaller business, a customer book, or a goodwill purchase.
- Buying the trading assets of a business — plant, equipment, vehicles, fittings, or stock — in an asset purchase rather than a share purchase.
- Legal, accountancy, and due-diligence fees incurred in getting the deal done.
- The extra working capital the enlarged business needs from completion — payroll, supplier deposits, and stock for the combined operation.
Why it suits a defined deal
An acquisition is a planned, known cost with a clear commercial purpose, which makes it a natural fit for a fixed-instalment product. Where the spend is a single defined sum — your share of the price, or a clean asset purchase — Credicorp Slice is built for exactly that. Where the costs land in stages either side of completion, a flexible facility you draw against as you go can fit better; our guide to choosing Flex or Slice for a defined purchase walks through the trade-offs. You can read how the flexible side works in how Credicorp Flex works.
Do the diligence first
The discipline that protects an acquisition is the same one that protects the borrowing behind it. Be realistic about how quickly the acquired trade, customers, or assets will generate the income you are counting on, and build in a ramp-up period before they reach full contribution. Match the repayment term to that expected payback, and keep working-capital headroom for the first few months while the two operations bed in — integration almost always costs more and takes longer than the model assumes. Costing the whole transaction in one go, rather than the consideration alone, usually avoids coming back for more midway through.
How we lend
Credicorp lends only to UK limited companies and LLPs for business purposes, never to sole traders or individuals. You apply as the acquiring company for the business purpose of the acquisition, and if we make an offer you repay over the term and at the rate shown in your offer document — set after underwriting rather than quoted in advance. The loan sits with the company and we take no personal guarantee from directors.
For related guidance, see funding a one-off stock clearance or supplier buy-out, funding a franchise fee or new territory, funding a deposit on larger premises, and funding day-to-day working capital.
As an exempt business lender, Credicorp sits outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply. To talk a planned acquisition through, get in touch via contact us.
See also: Can business finance help bridge a short-term cashflow gap?, Bridging a late CIS or VAT refund, Bridging an R&D tax credit claim.