FINANCE OPTIONS

^Get Acquisition Finance for Accountancy Practices Today

Q: How much acquisition finance can a practice typically borrow?

Typical acquisition finance borrowing is often £50,000 to £2,000,000, depending on the subtype and the repayment case. Term loans for practice buyouts are commonly £100,000 to £2,000,000, asset-backed acquisition term loans often £50,000 to £1,500,000, and bridging loans usually £50,000 to £1,000,000.

Q: How long does it take to reach drawdown readiness?

Timelines vary by deal readiness and documentation depth. Initial decisions are commonly 1 to 3 weeks for term buyouts, while bridging often takes 5 to 15 business days for initial approval. Funds are often available 4 to 10 weeks from application to drawdown readiness, depending on underwriting depth and completion timing.

Q: What interest rates should accountancy buyers expect?

Broadly, term acquisition loans can be around 7% to 15% p.a. for practice buyouts, and about 6.5% to 14% p.a. for asset-backed acquisition term loans. Bridging loans are usually higher cost, broadly around 9% to 18% p.a. effective annualised cost, depending on the term, whether interest is interest-only and any applicable fees.

Q: Which acquisition finance type fits earn-out and deferred consideration deals?

For tight completion timing or when part of the consideration is deferred, an acquisition bridging loan is often used. It is typically for 3 to 12 months and assessed against the deal timeline and take-out or repayment plan. Lenders will scrutinise the repayment source because the bridge is not designed as long-term amortisation.

Acquisition Finance for Accountancy Practices is typically a term loan used to fund the purchase of an existing accountancy firm. Lenders often support deals that cover the sale price, professional-related acquisition costs like legal and due diligence, and sometimes short-term working capital needed after completion. For UK buyers, underwriting commonly considers the target and buyer’s historical trading, cash generation and how the acquisition is structured, including earn-out or deferred consideration. If your fee income and integration plans look credible, acquisition finance can help you turn a client-base opportunity into a funded, repayable purchase.

Acquisition Finance

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^Benefits for practice buyouts and completion timing

For accountancy-practice transactions, acquisition finance is designed to align funding with how professional services generate cash. It can support completion, protect working capital during handover, and structure repayments around fee income patterns.

Faster deal completion

Repay from fee income

Covers acquisition costs

SCALE YOUR BUSINESS TO NEW HEIGHTS

Types of acquisition finance

Term loan for practice buyout

Commonly used for buying the shares or business assets of another accountancy firm.

Term loan for practice buyout

Term loans for practice buyouts are often considered where the buyer is a UK limited company or partnership and can show trading history, affordability and a deal expected to complete. Lenders typically look at the income and cashflow support using management accounts and, where available, audited accounts. Typical amounts are usually £100,000 to £2,000,000, with terms commonly between 24 and 84 months. Pricing can be fixed or variable, broadly around 7% to 15% p.a., depending on leverage, security and perceived acquisition risk.

Asset-backed acquisition term loan

Focused where the transaction includes assets that can be secured.

Asset-backed acquisition term loan

Asset-backed acquisition term loans may fit where the deal includes tangible elements and a security package is feasible. For professional services, security can be more limited, though where a charge package is available lenders may take charges over business assets and sometimes require guarantees. Typical amounts are often £50,000 to £1,500,000, with terms usually 18 to 60 months. Interest rates can be broadly around 6.5% to 14% p.a. Total timelines to drawdown readiness often run 4 to 10 weeks, depending on collateral and legal documentation.

Acquisition bridging loan

Helps fund a purchase when completion or earn-out timing is tight.

Acquisition bridging loan

Acquisition bridging loans are commonly used for exchange-to-completion gaps or to fund deferred consideration and earn-out tranches. They typically run for 3 to 12 months, with typical amounts of £50,000 to £1,000,000. Because bridges carry short-duration and take-out risk, pricing is often higher, broadly around 9% to 18% p.a. effective annualised cost, depending on whether interest is interest-only and on any fees. Initial approval can be within 5 to 15 business days, with drawdown readiness often taking 2 to 6 weeks once deal documents are provided.

Typical Funding Journeys on Funding Agent

Submit your funding request

Our platform enriches your application using business data

Your request is matched to suitable lenders

Receive offers and proceed with the best option

How to get acquisition finance through Funding Agent

Share your deal and finances

Tell us who you are buying, the indicative purchase price or consideration, expected completion date, and share recent accounts or management information plus banking details so we can build the lender-ready package.

Match the right lender route

We review your acquisition structure, including whether you need a buyout term loan or bridging for completion or deferred consideration. We also check key affordability signals based on the information lenders typically use for underwriting professional services deals.

Apply and prepare for completion

Once matched, we support the application through underwriting and conditions so your facility is prepared for drawdown around completion. This includes coordinating the deal-linked documentation lenders require.