Questions we're often asked
Answers about Ignite Funding Partners, our criteria, our process and our funding solutions.
About Ignite
What does Ignite Funding Partners do?
We're a specialist lender providing £1m to £25m to proven UK businesses for organic growth, acquisitions, ownership transitions and refinancing.
How much can you lend?
Between £1m and £25m per business, at up to 4x EBITDA.
What size of business do you fund?
UK businesses with at least £1m of EBITDA, a strong management team and a track record of profitable trading.
What types of facility do you offer?
Term loans and revolving credit, structured around each business's cash flow and plans.
How quickly can you give indicative terms?
Within days of receiving the information we need. The people who make the credit decision will be involved from the start.
Do you work only through advisers?
Most of our deals come through corporate finance advisers and private equity investors.
What don't you fund?
We don't lend to start-ups, pre-profit businesses, property development, early-stage ventures or businesses based outside the UK.
Who backs Ignite?
Ignite is owned by its employees and a select group of high net worth individuals. £500m of lending capital is being lined from a range of institutions.
Do you fund management buyouts?
Yes. We provide £1m to £25m of debt funding for management buyouts of profitable UK businesses, at up to 4x EBITDA, without the management team giving up equity to us.
Which sectors do you lend to?
We lend across UK sectors through four strategies: private equity-backed businesses, owner-managed businesses, healthcare services and fund finance. We don't lend to start-ups, pre-profit businesses or property development.
Is Ignite a bank?
No. Ignite is a specialist lender.
Why use a specialist lender alongside your bank?
Banks remain central to UK business finance, but different businesses need different kinds of finance. Research from the Bank of England finds that a more diverse lending market now gives UK businesses a broader range of funding options. A specialist lender adds to that choice, with appetite built for a particular size of deal, sector or situation.
Criteria
How much can I borrow?
Between £1m and £25m, at up to 4x EBITDA.
What's the minimum EBITDA?
£1m.
Do you lend outside the UK?
No. We lend to UK businesses, in every region.
Process and timings
How long does acquisition finance take?
Indicative terms within days of receiving the headline numbers, and completion typically weeks, depending on due diligence and legal work.
Who makes the credit decision?
Experienced people. Our AI tools analyse company information quickly, but every credit decision is made by people who meet the management team.
Acquisition finance
How much can I borrow to buy a business?
Between £1m and £25m, at up to 4x EBITDA, depending on the cash flow of the combined business and the plan for it.
Do you fund buy-and-build strategies?
Yes.
Do I need a corporate finance adviser?
Most of our deals come through advisers, and we work closely with them, but we're happy to speak to management teams directly.
Management buyouts
How much can a management team borrow for an MBO?
Between £1m and £25m, at up to 4x EBITDA, depending on the business's cash flow.
Will the management team have to give up equity to Ignite?
No. We provide debt, so ownership stays with the management team and any other shareholders.
How long does an MBO take to fund?
Indicative terms within days of receiving the headline numbers; completion typically takes weeks.
Do you fund management buy-ins?
Yes, on the same terms, with closer attention to the incoming team's track record.
Do we need an adviser?
Most MBOs run with a corporate finance adviser, and we recommend one, but we're happy to talk to management teams first.
Private equity sponsors
Do you lend alongside other lenders?
Yes we can do club deals and super senior RCF from a bank.
Can you commit to future acquisitions at the outset?
We can support buy-and-build plans, ensuring the funding for the next deal is agreed before you need it.
Who will we deal with?
The same funding team from first meeting through completion and beyond, including the people who approve the credit.
What leverage do you offer on a sponsor-backed buyout?
Up to 4x EBITDA, through term loans and revolving credit of £1m to £25m.
Owner-managed businesses
Will I have to give up equity?
No. We provide debt funding, so ownership stays with you and your shareholders.
How long does it take?
Indicative terms within days. Completion typically takes weeks, depending on due diligence and legal work.
What will you need from me?
3 years of accounts, current management accounts, a forecast and a short description of what the funding is for.
Can you fund a management buyout?
Yes. We provide £1m to £25m of senior debt for management buyouts of profitable UK businesses, at up to 4x EBITDA.
Can you fund a shareholder buyout?
Yes. We fund the purchase of a retiring or departing shareholder's stake, so ownership stays with the people running the business.
Healthcare
Do you fund day nursery groups?
Yes. We fund nursery groups adding settings, buying competitors or refinancing, from £1m to £25m, where the group has at least £1m of EBITDA.
Do you lend to care home groups?
Yes, for acquisitions, refurbishment and new capacity, with occupancy and regulatory ratings assessed alongside cash flow.
What do you look at when lending to a healthcare business?
Regulatory ratings and other operational metrics, as well as the usual credit measures.
Fund finance
What is a NAV facility?
A loan to a fund secured against the value of its portfolio, typically used to fund follow-on investment or return cash to investors before exits.