Often, yes. The business you're buying may have assets that can support part of the funding: unpaid customer invoices, stock, equipment or property. Lenders can advance money against them as part of the deal.
How it works
- Invoice finance: borrowing against the target's unpaid invoices.
- Asset-based lending: a facility secured on a mix of invoices, stock and equipment.
- Asset finance: raising money against equipment or vehicles the business owns.
- A commercial mortgage: borrowing against property the business owns.
These can sit alongside a cash-flow loan, reducing how much has to be lent against profits alone.
Is it allowed?
Yes. For private companies, the old rules that stopped a company helping to fund the purchase of its own shares were abolished in 2008. They still apply to public companies.
What to watch
The business still has to repay this borrowing, and assets used here can't also support its day-to-day finance. Make sure it keeps enough working capital after completion. See Can I buy a business with no money down?.
Get advice
The directors still have to act in the company's interests. Your solicitor will cover this as part of the deal.
Last reviewed: 8 October 2026