For management teams looking to buy a company, invoice finance, which includes factoring and invoice discounting, is becoming an increasingly popular form of funding for buyouts and a viable alternative to using traditional business loans.
Whether you’re buying a company from its current owner or looking to acquire a firm which is on the market, securing the capital required to do so can often be a challenge.

Over the past decade, Lloyds TSB Commercial Finance has become a leading funder of management buyouts (MBO), management buy-ins (MBI) and buy-in management buyouts (BIMBO).

Whereas EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples have traditionally been used as a basis for lending, our facilities enable you to secure funding which is leveraged against the value of the business’ sales ledger, stock, plant, machinery and property.

The ability to quickly unlock the hidden value within a company’s entire balance sheet is making it a significant source of buyout funding for companies of all sizes and across all sectors.

Our facilities are able to: 

• Release the value of the firm’s existing assets and enable you to fund the buyout without relinquishing equity or taking on additional debt
• Slot neatly into the funding mix for transactions of all sizes and complexities, effectively working alongside other types of finance to fund the deal
• Quickly release the working capital needed to implement post-buyout growth strategies
• Ambitious management teams who are looking to buy a scalable business in order to accelerate growth and unlock its potential need to ensure they have the right type of financing in place.

Invoice finance, which includes factoring and invoice discounting, provides access to significant levels of funding without some of the restrictions many senior lenders put in place.

Lloyds TSB Commercial Finance works hard with management teams to structure facilities that both fund the deal and provides the headroom needed to react quickly to any opportunities or threats that arise post-completion.

Contact us to find out more about how Lloyds TSB Commercial Finance’s flexible buyout 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.