Alternatives to vendor finance

Your options when buying a business

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Funding options


Making A Buy-in Affordable

  • Bespoke finance packages
  • Individual solutions
  • Flexible repayment arrangements
  • Terms to suit your business plan

Private Equity

  • High levels of finance available
  • Individual support
  • Redemption arrangements available
  • Variety of repayment structures

Secured Loans

  • From 2% above base rate
  • Up to 25 years terms
  • Finance secured on business or personal assets
  • Early repayments without penalty

Talk to Rangewell - the business finance experts

Buying a business often demand Vendor Finance. At Rangewell, we have alternatives to provide the scale of funding you need.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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If you're considering buying a business then seller funding or vendor finance is one option

Alternatives exist which could cut your costs

Buying a successful business will, inevitably, be expensive. However, the seller may not expect to receive the entire purchase price upfront as a lump sum. In fact, he or she may even help you fund the deal. Vendor finance, or carryback, is a loan the seller of a business gives to the new buyer to cover all or part of the cost. 

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It can make businesses easier to sell and increase the final sum earned by the seller. It can also mean buyers can find it easier to buy - although it may mean increased costs.

Seller financing will usually only cover part of the agreed price. That means buyers must make up the difference, often 20-30% or moreover an agreed period with regular repayments. The rate of interest will be agreed as part of the sale, and can commonly be anywhere from 5% to 10% or more.

It can be an expensive way to borrow money but if, as a buyer, you cannot meet the lending requirements of banks, it may be the simplest solution.

However, even if you believe that lenders will not be able to help, there may be solutions that could provide the cash you need to buy a company that would offer more affordable, and may even let you negotiate a better purchase price.

Want to know more about vendor finance or your options?

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What is vendor property finance?

Vendor finance is where a vendor lends money to their customer, who will then use those funds to buy goods or services. This is most commonly used when a supplier will see that value in a relationship with a customer who may not have the cash flow available to buy the product and services without finance in place. 

An established relationship between the borrower and the vendor will usually be in place before the vendor finance agreement is made. The vendor will value continued business from their customers and trust them to pay back the money.

Vendors may also use this type of finance to earn the interest paid by the customer, although vendor financing without interest will also be possible.

Is vendor finance not right for you? Get in touch to learn about asset finance, and credit lines available. We can help you through your sales process, and will go the extra mile to source the deal for your needs!

How does vendor property finance work?

With a vendor loan, the customer typically will pay a deposit to the vendor in exchange for the borrowed amount, which will be paid back over an agreed period with interest. 

Typical vendor rates will range from 5% to 10%. The interest rate will be added to the repayments until the amount has been returned. 

Borrowing this way means that the lender won't need to rely on banks and therefore don't need to meet the applicable lending requirements. Usually, this means higher interest rates than other lenders or bank loans may charge. However, some vendors may keep their interest rates low to incentivise new business.

To learn more about the types of vendor finance available, speak to Rangewell today!

What are the alternatives to vendor property finance?

If you're considering buying a business, the question of how you will pay for it looms large. Seller funding or vendor finance is one answer - but alternatives exist which could cut your costs.

Private Equity investment

Private Equity firms may be able to advance funding for a business purchase. However, in return for their funding, they will want a share in your business and its profits. They will usually want to cash out altogether after a set time - often 5 years - which will mean you will need a new source of capital to buy back their share.

Virtually any level of funding can be provided, but most will include stipulations about how the company must be run and may include financial and other objectives to meet. If things don’t go to plan, it may mean running the risk of losing control of your business.

Asset Refinance

Asset refinance could allow you to raise a substantial amount of cash without the need for external investors. It works by leveraging against the assets already in the company.

This means taking out a finance agreement on the premises, stock and equipment that the business already owns. The sum raised is then used to help buy the business, and repayments are made on the assets until the loan is paid off, and they become the property of the business once more.

Using the assets of the company to buy the company itself can be a particularly effective solution for those businesses with a large investment in plant and property, and if a commercial remortgage is used on business premises, the costs can be repaid over up to 20 years.

Business Loans

A straightforward business loan may provide sufficient cash to replace vendor finance. Business lenders may offer unsecured loans, repayable over three to five years, or a larger scale of lending and a longer-term with a secured loan, with the security provided by other business assets, or frequently by the borrower's home. A secured loan can offer lower rates as well a longer repayment term, and depending on the security offered can provide any level of funding.

Is vendor finance right for you?

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Getting the funding you need

In practice, because of the scale of lending required, it may be necessary to arrange a package of funding that combines several sources of credit to raise the sums you need for a business purchase.

At Rangewell, we are experts in arranging this kind of bespoke ‘jigsaw’ funding. Because we can work with lenders across the entire market, we can source the most competitive lending for each element in your jigsaw, and combine them into the funding you need.

Whether you're looking at vendor finance, private equity for management buy-ins or even private equity for management buyouts, speak to us. 

To learn about the type of vendor finance suited to your needs, speak to Rangewell today! We can arrange a finance period and finance terms to suit your requirements. Our customer service teams can discuss anything from monthly payments to rental payments. 


  • Source a loan to make up the shortfall when buying a furniture business from a retiring owner

  • Find the most competitive Asset Refinance deal to allow the acquisition of a specialist printer

  • Help two dentists arrange ‘Jigsaw’ Funding to acquire an existing practice, and allowing the incumbent to be paid off in full

  • Find a combination of equity and lending to acquire a London accountancy partnership

  • Set up funding that would reduce the purchase price of a garden centre, compared with a staged payment agreement with its owner

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • Lending tailored to your needs
    At Rangewell we can combine several funding sources to help you raise large sums in ‘Jigsaw’ Finance.
  • Cutting the costs
    Our expertise can help you find the most cost-effective solutions - cutting your overall costs.
  • For any scale of business acquisition
    We can help set up solutions for any size of business, from tens of thousands of pound to tens of millions.
  • Negotiation
    Avoiding the need for vendor finance can improve your negotiating position and reduce your costs.
  • A fast service
    Sometimes it may be essential to move quickly. We can provide funding in days rather than weeks if required.
  • Specialist lending
    At Rangewell, we cover the entire lending market. We can help you find the most appropriate lenders for your sector, and cut costs.

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Frequently asked questions

Have a question?

Is vendor finance a loan?

A vendor note is a type of vendor finance that provides a short term loan to a customer, usually securing money borrowed with the good that the customer has purchased.

To find a vendor finance arrangement to suit your needs, get in touch with Rangewell.

How do vendor terms work?

This is a scenario where the vendor or owner offers to finance the sale rather than the purchaser going to a bank to source funding. 

Speak to Rangewell today to learn more about vendor finance deals.

What is a vendor finance scheme?

A vendor financing scheme will refer to the lending of money by a vendor to a customer, who will then use the money to buy the vendor's inventory.

To learn more about the risks of vendor finance, speak to Rangwell today.

Is vendor finance a good idea?

Yes, vendor finance will suit you if you need to purchase essential goods for your business and don't wish to use the money already in your business. If you'd rather not borrow (or can't borrow), then vendor finance will be a good option.

What is a vendor finance agreement?

Vendor Finance is a form of lending in which a company lends money to be used by the borrower to buy the vendor's products or property. it is also known a trade credit.

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