Deal Financing · LendX OS
M&A exits don't have to be all-or-nothing. Vendor-finance splits the sale price — buyer pays half on completion, half as a secured monthly payment over five years. The seller gets an ongoing yield. The buyer gets a business they can actually afford. Everyone knows the rate, the term, and the timeline before signing.
A £600,000 SME sale. The vendor takes £300,000 cash on completion and the remaining £300,000 paid back as a secured monthly instalment over 5 years. The buyer runs the business from day one while the seller earns a defined yield. The whole structure sits behind a debenture — clear for the seller, manageable for the buyer, auditable for everyone. HGV & fleet sale — earn a yield while the buyer keeps the trucks moving.
Worked Example
How it works
A vendor-finance M&A deal is a normal commercial loan, just one where the seller is the lender. Three things have to align before signature: the deferred consideration has to be sized, the security has to attach to the right asset, and the monthly repayment has to fit the buyer's cash flow.
The balance of the purchase price that isn't paid on completion — structured as a defined creditor instrument, not a vague earn-out.
Buyer Payout Timeline
Cash on completion, monthly instalments thereafter
The deferred balance is secured against the business being acquired — typically a debenture over trade assets and a charge over goodwill.
Buyer Payout Timeline
Charge perfected within 21 days of completion
Repayments sized to buyer cash flow, not seller preference. Surfaced through a buyer-side affordability check before signature.
Buyer Payout Timeline
Same-day DD, vendor yield visible deal-by-deal
Buyer-side due diligence
Vendor-finance only works if the buyer's monthly payment fits their cash flow post-acquisition. Run the affordability check first — same data set, plain-English output, no opaque banker spreadsheets.
Check buyer affordabilityIndicative yields from 6.5% APR · Terms from 3–7 years · No upfront structuring fees