For firms looking to finance a merger or acquisition, invoice finance, which includes factoring and invoice discounting, is an ideal way of funding a deal without taking out a traditional business loan.

A merger or acquisition is often a cost effective means of quickly building scale, extending capabilities, enhancing product ranges and expanding geographic footprints. 

Acquisitive companies can benefit from the synergies and scale provided by these deals, but many firms struggle to fund them using their cash reserves alone.

Likewise, many businesses will try to avoid relinquishing equity or burdening their balance sheet with significant levels of new debt in order to complete a deal.

Over the past decade, invoice finance, which includes factoring and invoice discounting, has established itself as an increasingly important source of financing for mergers and acquisitions.

Lloyds TSB Commercial Finance’s lending solutions ensure that a deal can be funded by releasing the value of existing assets such as the sales ledger, stock, plant, machinery or property.

Our facilities are able to:

• Unlock the ‘hidden’ value within company’s entire balance sheet, making it a significant source of funding for firms of all sizes and across all sectors
• Provide rapid access to capital, enabling management to move quickly when they spot a potential target business
• Give the enlarged company the headroom required to target further organic growth and the ability to quickly ramp up facilities to support further complementary acquisitions
• We work closely with a firm and their advisors to structure the optimum set of facilities for the deal and the flexibility of our solutions allow it to sit neatly in a package that can include other types of funding.

This highly tailored and strategic approach enables us to structure robust packages to fund complex and sophisticated transactions and has seen us become a major force in the merger and acquisitions arena.

Contact us to find out more about how Lloyds TSB Commercial Finance’s flexible funding solutions can assist your business.

(Alternatively to find out how much you can raise by using our factoring and invoice discounting services, use our quote engine.)

The provision of credit or leasing services by us is subject to your meeting our Credit approval.  Please ensure that you only apply for credit or leasing services that you can comfortably afford.