Short Term Business Loans UK
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Does your business have a new owner? That's not a barrier to funding at Rivers

New business owner

At Rivers, we pride ourselves on a practical approach to business loans, which often means we will consider funding applications that other lenders won't. One key example is when it comes to an established business with a new owner. 

A lot of non-bank lenders refuse to lend to businesses, even if they are well-established, when they come under new ownership - effectively treating it like a brand new business. This is because they perceive a change in ownership to introduce risk and uncertainty, even if the business itself has a strong track record. At Rivers, we don't see it that way, and in this article we explain why. 

Why lenders won't consider an established business with a new owner 

Lots of brokers and business owners come up against challenges when it comes to finding funding for businesses under new ownership. Very often, they won't consider lending until the new owners have been in place for at least 12 months. Their reasoning is understandable, citing: 

A loss of historical continuity which may mean the new owner operates the business differently, impacting its performance.  

An unknown track record of the new owner, including their personal creditworthiness and business experience, leading the lender to treat the business like a start-up. 

Structural and legal concerns - new business structures may have an impact on how the company is viewed by the lender. 

The risk of transition problems - business transitions often come with operational hiccoughs such as increased employee turnover, customer loss, or vendor distrust, which can lead to a shift in cash flow. 

When and why, Rivers will consider funding applications from a business under new ownership  

At Rivers, we see things differently. As with any funding application, we look at whether the business and its leadership meet our minimum lending criteria, and then we consider the application on its individual, tangible merits.  

Crucially, we are interested in how long the business has been trading, not how long the owner has been in place - even with new businesses we will consider them for funding once they've been trading for a minimum of three months

What are our minimum lending criteria?  

  • At least one company Director or shareholder is a UK homeowner 
  • You are a limited company or LLP 
  • You are registered in England or Wales 
  • The minimum trading time for short-term loans is three months, for all our other business lending solutions it is six months 

What do you need to include in a Rivers funding application?  

  • Six months of bank statements (unless you haven't been trading for six months) 
  • Full financial accounts for the most recent financial year end, as recorded at Companies House  
  • A Rivers proposal form, which includes information on the Board of Directors, the company registration number, company details, and why you want the loan 

Other things that can impact your loan application  

  • An unpaid overdraft facility  
  • Other lender debt 
  • Outstanding Director Loans owed by the company 
  • Business Credit Card debt  

Want to find out if you're eligible for funding with Rivers?  

Check your eligibility