TrueValue M&A Network

Commercial lenders

Banks and alternative lenders that fund acquisitions directly: term loans, asset-based facilities, private debt and the working capital lines a business needs from the day after completion.

Commercial lenders

Verified and featured professionals are listed first. Refine by location, sector or deal size.

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What commercial lenders do

A commercial lender assesses the target, the buyer and the structure, and advances funds secured on the business being bought and sometimes on the buyer’s wider assets. High-street banks lend against cash flow and property with conservative leverage; challenger banks and asset-based lenders advance against receivables, stock and plant; private debt funds offer higher leverage and more flexible terms at a higher price.

The lender’s credit process — information requirements, the credit committee, the valuation of security, the legal documentation — sets a large part of the deal timetable. Knowing it in advance is worth weeks.

When to engage them

Speak to lenders early, before the offer, with a summary of the target, the proposed structure and your own position. An indicative view on leverage and pricing shapes what you can offer, and an early relationship shortens credit approval when the deal is live.

Usually active at

  • Making or negotiating an offer
  • In due diligence
  • Legal documents and completion
  • Completed

What they typically help with

  • Term loans secured on the target’s cash flow and assets
  • Invoice finance and asset-based lending
  • Property finance where premises are part of the deal
  • Working capital facilities from completion
  • Refinancing existing debt in the target

Questions to ask before you engage

  1. 1. What is your appetite for this sector and this deal size, and what leverage would you consider?
  2. 2. What security do you require, and will you take personal guarantees?
  3. 3. What are your covenants, how often are they tested, and what happens on a breach?
  4. 4. What is the all-in cost — margin, arrangement fee, non-utilisation fee, legal costs?
  5. 5. How long does credit approval take from a complete information pack?

How commercial lenders are paid

A lender’s cost is the margin over a reference rate, an arrangement fee on the facility, the lender’s legal costs (usually borne by the borrower), any non-utilisation fee on undrawn amounts, and for invoice finance a discount charge plus a service fee. Ask for every line and model the all-in cost, not the headline margin.

How TrueValue fits alongside

TrueValue treats invoice finance the way a lender does — as a cost of earnings that travels with the business rather than debt repaid at exit — and caps every asset-backed draw at the loan-to-value the target’s filed balance sheet supports. The covenant tests in the deal model are the ones a lender will run, so a buyer sees the headroom, or the breach, before the facility letter arrives.

Frequently asked

Will a bank lend to a first-time buyer?

Sometimes, depending on the buyer’s experience, their equity contribution, the target’s track record and the security available. Personal guarantees are common at the smaller end. Asset-based lenders look more at the assets than at the borrower’s history.

What is a covenant?

A financial test written into the facility — leverage, interest cover, debt service cover, fixed-charge cover — that the business must pass at each test date. A breach gives the lender rights ranging from a fee to calling in the loan. Headroom against covenants is one of the first things to check in any funded structure.

Can a lender in this network confirm they are regulated?

Lending to companies is not itself regulated in the same way as consumer lending, but many lenders are authorised firms. Ask, and verify on the FCA register. A listing here does not confirm regulated status.

Listings in the TrueValue M&A Network are provided for information. A listing is not an endorsement or a recommendation, and TrueValue does not guarantee any professional’s performance. You must carry out your own due diligence before engaging anyone, verify regulated status independently with the relevant regulator, and seek qualified legal, financial and tax advice where appropriate.