It depends on the structure of the deal, the security behind it, the lender and your profile as a buyer. Each layer of the deal is priced differently, and your offers will quote the rate for each.
How the layers compare
- Senior debt is usually the cheapest, because it ranks first and is often secured.
- Mezzanine or unitranche costs more, because it sits behind the senior debt and carries more risk. See What are mezzanine and unitranche finance?.
- A vendor loan usually carries interest agreed with the seller. See What is vendor finance?.
- Asset-backed lending against the target's assets can price well, because it's secured on them.
What moves the rate
- the strength and stability of the target's profits
- the security available
- how much of the price you and the seller are funding
- your sector experience and credit history
- the sector, and each lender's appetite
Compare the whole cost
Look at fees, the term, early repayment terms and any personal guarantees alongside the rates. We help you compare offers on rate, term, security and covenants. See How do I compare the business finance offers you find?
Last reviewed: 8 October 2026