Last Updated on December 18, 2025 by Joy Kyalo
When someone tells you that you can buy a business with no money may seem insane, but it can actually happen. Buying a business without having a large amount of money is attainable through several strategies.
Many successful entrepreneurs have done exactly that using strategies like seller financing, investor partnerships, and asset-based lending. While you can use several strategies to buy a business, the strategies can be risky, so it is crucial to understand them if you do not have a proper understanding. This guide will explore several ways you can buy a business with no money.
Key Takeaways
- You can buy a UK business with no money by structuring smart, legal financing deals.
- Seller financing and earn-outs let you pay using the business’s future profits.
- Motivated sellers are more open to flexible, low-upfront agreements.
- Strong negotiation, due diligence, and planning reduce risk and build trust.
What “Buying with no Money” Really Means
It is important to define what it means to buy something without money before delving into the financing options.
It does not imply getting a business without having a financial obligation – it implies utilizing the money of other individuals, business resources, or a creative deal structure to finance the acquisition.
In essence, you’re leveraging:
- The cash flow or assets of the business
- The willingness of the seller to finance the sale or
- Outside investors or lenders with an interest in your plan.
As the buyer, it is your responsibility to make a persuasive business case and negotiation strategy that will be beneficial to all parties involved.
Which Strategies Can You Use to Buy a Business With No Money?
Below are creative financing strategies that you can use to buy a business with no money.
Equity partnership:
An equity partnership is an agreement between two or more parties to pool their resources, skills, and expertise to invest in a business. The investment comes in exchange for equity and ownership. This strategy allows you to get an investment to buy a business while in exchange for, they get ownership or equity of the business.
Seller financing (vendor financing):
One of the most common methods of acquiring a business with little or no money is seller financing, also known as vendor financing.
Under this structure, the seller becomes the lender. They do not give you the entire purchase price to complete immediately, but allow you to pay in installments, and often with profits of the business itself.
For instance, if the business costs £100,000, you may be allowed to pay 10% of the price in advance (£10,000) and the balance in instalments over three to five years, including interest. The seller can even sell it at £0 and pay the rest in instalments over a period of years.
Business and government loans:
The UK government has a number of schemes that may fund entrepreneurs who purchase existing businesses. Though not directly intended as buyouts, such funds may regularly be invested in acquisitions in the event the business plan is healthy.
Examples include:
- The start-up loans by the British Business Bank are up to £25,000 per director.
- LEPs and Regional Growth Funds grants.
- Community Development Finance Institutions (CDFIs) of socially beneficial enterprises.
- With a combination of such programs and seller financing or a portion of the investment, a no-money-down deal may become possible.
How to Buy a Business with no Money?
Look for motivated sellers
Look for motivated sellers who are keen on leaving the business, either out of personal or financial reasons. Common examples include:
- Leaving out proprietors who have no successors,
- Entrepreneurs whose heads are burned out and who are looking to venture into something new.
- Proprietors who have health complications or are to be relocated,
- It happens that poor management is the reason why businesses are underperforming and not because their fundamentals are bad.
These sellers would be willing to make flexible deals or creative offers where you can acquire the property without paying the full price upfront. Such opportunities are provided on platforms such as:
- Daltons Business
- RightBiz
- Bizdaq
- Local business brokers or accountants.
Be empathetic and have a good strategy in mind-demonstrate to the seller that you will keep his legacy alive, and that the mere cash does not necessarily work.
Pro Tip: Smart Ways to Buy a Business With No Money
Focus on motivated sellers first and lead with a strong business plan, not cash. Sellers are more flexible when you show how you’ll protect their legacy and grow profits. Always combine creative financing with clear legal agreements to reduce risk and build trust.
Consider seller financing
This strategy works as the interest charged on the deferral amount is to the seller. You are allowed to own it outright and remunerate yourself out of the proceeds of the future. To succeed, ensure you have:
- Attainable repayment plan,
- A legal contract in terms of interest, security, and default, and
- An articulate business plan on how you will make the company profitable.
Lease-to-own or earn-out Agreement
The other strategy method is a lease-to-own or earn-out. In this case, you will be operating the business under a fixed payment within a certain period of time. When some conditions are fulfilled, such as attaining profit goals or the term is over, then you become the owner.
The structure is for service-oriented businesses, restaurants, or franchisee businesses where goodwill and brand value are much more valuable than the physical properties.
Instead, an earn-out refers to paying the seller out of the future profits of the business. It is commonly applied when the seller is to be engaged during a transition period.
Such transactions need trust and a good contract specifying:
- Performance metrics,
- Conditions of transfer of ownership, and
- The consequence in case targets are not achieved?
Leverage business assets for financing
Most of the businesses possess assets that can be utilised to raise funds, such as property, cars, inventory, or equipment.
Asset-based lending allows borrowing on such assets to finance the acquisition. Asset-backed financing is available to acquisitions to lenders in the UK, such as Lloyds Bank, HSBC, and Ultimate Finance.
Also, invoice financing or factoring will enable you to borrow on unpaid invoices, particularly effective when using B2B companies with consistent receivables.
For instance, if you are buying a cleaning company that is £80,000. It has £30,000 in unpaid invoices. You purchase it by paying 80% advance on invoices (£24,000) from the lender. This is financed by the rest by instalments or seller financing.
Introduce an investor or a business partner
When you have good business skills and capital is not available, it is better to partner with a person who has time and experience, albeit less capital.
The capital may be raised by the equity investors or silent partners in exchange for a portion of ownership. The trick of it is to match expectations:
- Will they participate in decision-making?
- What’s their expected return?
- When and how can they exit?
Sites such as Angel Investment Network UK or Seedrs may introduce you to investors who are interested in acquiring small businesses.
Alternatively, you can raise funds within a short period with the help of either private lenders or peer-to-peer websites like Funding Circle and Assetz Capital that have flexible repayment plans.
Management buy-in (MBI) or buy-out (MBO)
In case you are already operating or running a business, you can suggest a Management Buy-Out (MBO) or a Management Buy-In (MBI). When there is an MBO, current managers purchase the firm from the present owners.
An MBI involves an external manager (you) purchasing into the business and gaining control.
These deals are usually backed by banks and private equity firms since the involvement of management lowers the risk of operation.
You can also make the deal so: even though you do not have any personal funds, a portion is financed by lenders, the seller retains some equity temporarily, and the business’s profits are used for repayments.
Negotiate Smartly
No-money deals rely heavily on negotiation skills. To win the seller’s confidence, you must present a detailed business plan showing how you’ll grow or stabilise the company.
Offer non-cash value, such as management expertise, existing client networks, or digital marketing upgrades.
Propose performance-based payments, linking instalments to business results.
The more you show the seller that their business is in capable hands, the more flexible they’ll be with no money terms.
Avoid legal and financial pitfalls
Even if you’re not paying upfront, you’re still assuming risk. Always conduct due diligence – review accounts, contracts, tax history, and debts.
Additionally, consult a solicitor experienced in business acquisitions so as to ensure you have written agreements protecting both parties.
Avoid rushing deals that seem “too good to be true.” Some distressed businesses may carry hidden liabilities that outweigh their benefits.
To conclude, buying a business with no money isn’t about avoiding responsibility – it’s about being resourceful, strategic, and persuasive.
With the right combination of seller trust, creative financing, and strong management skills, you can acquire an existing business even without deep pockets.
Start by identifying businesses that fit your skills, approach motivated sellers, and build win-win deals that let you step into ownership while paying into the company’s own future success.
FAQs:
Q: How to buy a franchise business with no money?
Ans: You can purchase a franchise without money through partnership, loans, or seller financing. Other options are crowdfunding and identifying a franchisor that has convenient financing schemes.
Q: Where to buy a business in the UK?
Ans: The UK has a number of locations where a business can be purchased, including online marketplaces, business brokers, and franchises. These are online marketplaces where you can purchase a business in the UK: Dalton businesses, BizSale.co.uk, Rightbiz, BusinessesForSale.com, and Deal Opportunities.
Q: How to buy out my business partner?
Ans: Buying out a business partner requires one to view the operating and partnership agreements to learn about the business. You must identify the value of the business with the assistance of a professional valuation, negotiate the purchase terms with your partner, and develop a formal, legally binding buyout agreement.
To cover the cost of buying the partner out, you will have to be able to finance the necessary amount, whether it be personal financing, loans, or seller financing.
Q: Can a foreigner buy a business in the UK?
Ans: Foreigners can purchase a business in the UK. Foreign ownership of a UK business has no limitations, but they are expected to adhere to the UK tax regulations, and are at liberty to either buy the shares or assets of the company.
Q: Can I borrow money to buy a business?
Ans: Yes, it is possible to borrow finance to purchase a business. You can purchase a business with a business acquisition loan that can be acquired from a bank.
Q: Can you buy a business name?
Ans: You cannot buy a business name; however, you can buy it along with the business sale or transfer.
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Joy is a content writer at BusinAssist with 6+ years of experience in content marketing and social media strategy. She specialises in company formation and virtual operations, guiding entrepreneurs through global markets with clarity, drawing on her marketing and PR background. Business Assist with BusinAssist – your business success partner.