Lenders want to see that you've run, managed or worked at a senior level in the same industry as the business you're buying. For most acquisition lenders, sector experience matters as much as the numbers.
Why it matters
The loan is repaid from the business's profits, so the lender needs confidence that you can keep it performing after the seller leaves. Experience in the same sector is the strongest evidence of that.
What counts
- Running a similar business, or a branch or division of one.
- Senior management experience in the same industry, such as operations, sales or finance.
- Working in the business you're buying, which is why management buyouts are well regarded. See MBO finance: how is a management buyout funded?.
If your experience is from a different sector
It's harder, but not impossible. A strong management team around you, a long handover from the seller, or a seller staying involved through an earn-out can all help.
First time owning a business?
That's common, especially in management buy-ins. See Can I get a loan to buy a business if I've never owned one?.
Last reviewed: 8 October 2026