Private sale finance for business
Your business can get finance to buy from a private seller, or from another business. Fewer lenders do it, and they check more, so give it a little longer.
- We are a broker, not a lender.
- We have a panel of over 120 lenders.
- There is no fee to apply.
- Our FCA number is 1058283. We are members of the NACFB.
Get the free list to check before you pay
Written by Martin Mackenzie, Sales Director. Checked .
Read the film's words
Private sale finance. In this video we are going to discuss private sale finance. It pays for an asset bought from a seller, not a dealer. The seller can be a person, or another business. The lender pays the seller. Your business pays the lender back each month. Most often, it is hire purchase. It can be vans, trucks, diggers, tractors or workshop machines. Fewer lenders do it for machines. More do it for vans. But the checks are the same. A dealer is known to the lender. A private seller is not. So the lender checks four things before it pays. First, the seller owns it. They show the invoice, and proof they paid. Next, any finance on it is cleared. It is paid off first, out of the price. The price is fair, in line with ones like it for sale. And the asset is real. The lender may look at it, in person or by video call. Or it may ask for photos. These checks keep your business safe too. Is there VAT? A person selling does not charge VAT. A business selling often does charge it, just as a dealer does. One. Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search. Two. A person in our team reads your application. Three. If you go ahead, you sign a consent form. Then we run a light credit check on the company. It is often known as a soft search. We send your case to the lenders that suit it. Each one does its own credit check. Four. We tell you what the lenders say. If one says yes, we send a quote. Then you sign. Five. The lender makes its checks, then pays the seller. A private sale takes longer. The lender checks more. Tell the seller you are using finance. Lenders often want to see three months of business bank statements. Our page has a free list to check before you pay. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
What is private sale finance?
A private seller is any seller that is not a recognised dealer or auction house. It can be a person, or another business.
What can a business buy privately on finance?
- vans, pickups, cars, trucks and trailers
- diggers, tractors, plant and farm machines
- machines and equipment for a workshop, kitchen or factory
Fewer lenders do it for machines than for vans. But the checks are the same. Buying a van? Our private sale and auction van guide goes step by step.
What does the lender check on a private sale?
On a private sale, the lender checks four things before it pays. A dealer is known to the lender, and a private seller is not.
- The seller owns it. The seller shows the original invoice, and proof they paid for it.
- Any finance on it is cleared. If money is still owed, it is paid off first, out of the price.
- The price is fair. It should be in line with similar ones for sale.
- The asset is real. The lender may inspect it, in person or by video call. Or it may ask us, or you, for photos.
These checks keep your business safe too. They help make sure you are not paying for something the seller does not own.
Is there VAT on a private sale?
A person selling is not VAT registered. So there is no VAT on the invoice to claim back. A business selling is often VAT registered. Then VAT is charged, just as from a dealer.
How does private sale finance work with a broker?
A broker finds the lender for you. Here is what happens, step by step.
- Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search.
- A person in our team reads your application. We get back to you within a day.
- If you want to go ahead, you sign a consent form. Then we run a light credit check on the company, often known as a soft search. We choose the lenders that suit your case, and send each one a full written case, called a proposal. Each lender then does its own credit check.
- We tell you what the lenders say. If finance is approved, we send you a quote with the figures. Then we take you through signing the finance documents.
- The lender makes its checks, then pays the seller. Any finance still owed is paid off first.
How long does private sale finance take?
Private sale finance takes longer than finance from a dealer. The same day is unlikely, as the lender checks more. Tell the seller you are using finance, and give yourself a few days.
Which type of finance is it?
Private sale finance is most often hire purchase, so the asset is yours at the end. A finance lease or a business loan can work too. Or buy it first, then raise cash on it with asset refinance.
Who can get private sale finance, and how much?
We arrange it for limited companies and LLPs (limited liability partnerships) from £15,000. For sole traders and partnerships, it is over £25,000.
For less than that, please speak to us before you apply. For sole traders and partnerships, we only arrange that in person, at our office, in the IV postcode area.
We set no top limit of our own. Lenders set different limits, and a few have no hard limit. With a panel of over 120 lenders, we can spread a big need across several.
Most lenders look for a deposit of 5 to 10%. No deposit at all is possible, and quite common.
Will I need to give a personal guarantee?
If you own a limited company, expect to be asked. A personal guarantee is a promise to pay if the company cannot. The lowest-cost lenders often want one. Another lender may not, but may cost more. We tell you before you sign.
What should I check before I pay a private seller?
This free list covers what a lender will ask for, and what keeps your business safe. Tick it off, then print it or save it as a PDF. Nothing you tick here is sent to us.
How do you get paid, and what does the finance cost?
The lender pays us a commission, only once your finance is in place. There is no fee to apply, and no fee up front. Apply by phone, by email, or online with Donnie, our in house AI agent, in under 5 minutes.
If you stop before your finance is in place, you owe us nothing, unless you agreed the rare inspection fee. The lender pays our commission to our principal, the firm we work under. It is already inside any figures we give you.
Most lenders pay a share of the amount borrowed. It is up to 10% of what you borrow, and often less. It depends on the lender. You see it before you sign. Lenders pay different amounts, so the one we find may not pay us the most, or the least. A dealer who arranges finance is a broker too.
Lenders' own fees vary. As a guide, a fee to set up the agreement is about £100 to £500. It is often paid with the first payment. Some charge about £30 to £50 a year. On hire purchase, about £100 to £300 to own the asset at the end.
Do you arrange private sale finance across Scotland and the UK?
Yes. Our office is in Scotland. From there we help businesses all over Scotland and the UK.
More and more lenders inspect by video call, and a lot let you sign online. So where the seller is does not matter.
★★★★★
Excellent service as ever from Martin at Mackenzie Commercial Finance who looks after various parts of our financing for us.
Private sale finance questions
Can a business get finance for a private sale?
Yes. Fewer lenders do it than for a dealer sale, and they check more. We know which lenders on our panel do.
Can I buy from another business on finance?
Yes. To a lender, another business that is not a dealer is a private seller. The same checks apply, and VAT is charged if that business is VAT registered.
What if the seller still owes finance on it?
It must be paid off first. The seller can show a letter saying it is paid. Or the lender pays it off, then pays the seller the rest.
Will the lender want to see the asset?
Most lenders want to see the asset before they pay. The lender may inspect it in person or by video call. Or it may ask us, or you, for photos through an app.
Does applying mean a credit check?
Applying to us is not a credit search, and it does not touch your credit score. A person in our team reads it first. To go ahead, you sign our consent form. Then we run a light credit check on the company, often known as a soft search. Each lender then does its own check.
Is this only for businesses?
Yes. We arrange finance for businesses only. This page is for a business buying an asset for its work.
How do I apply for private sale finance?
Apply online with Donnie, our in house AI agent, at any time, or call us. Donnie can also ask our team to call you back. We will tell you straight what is possible, and what happens next.
Use an AI assistant? It can ask Donnie questions for you. It finds him at /llms.txt and /api/agent.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie