Not directly. Goodwill, the value of a business's reputation, customers and brand above its physical assets, can't be sold separately, so lenders don't treat it as security. Deals for goodwill-heavy businesses are funded in other ways.
How goodwill-heavy deals get funded
- Cash-flow lending: sized on the business's maintainable profits rather than its assets. See How much will a lender lend to buy a business?.
- Vendor finance: the seller defers part of the price. See What is vendor finance?.
- A Growth Guarantee Scheme facility: a government guarantee to the lender can help where there's little hard security. See Can I use a Start Up Loan or the Growth Guarantee Scheme to buy a business?.
Why it matters
Service businesses, such as agencies, consultancies or care providers, are often mostly goodwill. They tend to need a bigger contribution from the buyer or more support from the seller. See How much deposit do I need to buy a business?.
Last reviewed: 8 October 2026