Cash Business Buyers FAQ - How Does it Work?

Learn how to sell your business fast and with no upfront fees on our state of the art AI powered platform.

How is Cash Business Buyers different from other business broker platforms?

Cash Business Buyers is a new kind of platform where we use the latest cutting edge technology to match business owners who wish to sell with global buyers who wish to buy an existing business.

We use AI technology to automatically match the business you are selling with our list of over 8,000 internation buyers.

Who can sell on Cash Business Buyers platform?

Owners of UK businesses as long as the business is incorporated in England & Wales as a Limited Company. We don't currently offer international businesses for sale.

How much does it cost to list my UK Limited Company/ business for sale?

Listing your business is entirely FREE on our platform. If we do not find a buyer for you there is absolutely no fee to pay.

How much does it cost if my UK Limited Company/ business sells on your platform?

Our ultra low fees start at only £1997 for a completed sale of your limited company.

For a limited time only, owners can list their company for sale with zero up front fees*. Make sure you list today whilst this offer stands
*Fees apply only on a completed sale based on the package you choose.

The price you pay will be determined by which of the three packages you chose when listing your business. You can find the information here.

There are no hidden fees.

Why are your fees so low compared to other business broker websites?

It's a little known fact that over 75% of businesses advertised for sale on well known business sale / business broker platforms do not sell. Most of the cost of selling a business goes into broker fees, marketing, staff and overheads of the business brokerage platform.

Our platform is entirely automated and therefore we are able to pass on our considerable savings in overheads to you as a business seller.

Business sale agents are traditionally like Estate Agents, they tell business owners what they want to hear in terms of valuations and then charge fees based on the valuation they've given. Usually, these fees are paid up front and non refundable in the event of a sale.

Given that the fees for listing your business for sale may often run into £10s of thousands of non refundable fees, you can see why business for sale platforms are such a lucrative business

Where will my business be listed for sale?

All our businesses for sale are listed with our partner platform listing UK limited companies for sale.

We have an active buyers list of over 8,000 global buyers looking for UK limited companies with a trading history.

Who on earth buys struggling companies?

There are many reasons why a buyer will buy your business, even if it's facing bankruptcy...

• The business has a trading history. This is important to buyers.
  
• Buyers may be looking for your customer lists. Finding new customers costs money.
  
• Some buyers are turnaround specialists who may see value where you no longer do
  
• Even losses can be valuable to a new owner for tax purposes
  
• Many buyers like to aggregate your clients with theirs
  

How much can I sell my business for?

Our buyers will pay £1 for your UK limited company, regardless of the debts and liabilities attached to the company.

Why would I sell my business for just £1?

£1 or one peppercorn is the lowest nominal figure to make a contract legal under English Law.

Remember you are selling the company's liabilities. If your company was trading well, you would not be looking for an alternative to insolvency.

However, if you remain the owner of a struggling business it could cost you tens of thousands in insolvency fees, and maybe even personal liability for debts incurred during your ownership. You can also face being disqualified as a Director for up to 15 years.

The one sure way to remove your personal liability is to sell that liability to a third party - a new owner. This is what the £1 payment is for.

So, you can sell your company. All the debts and liabilities will move to the new owner, and it is up to the new owner to deal with creditors, HMRC, PAYE, leases etc. All the liabilities of the company.

What information does Cash Business Buyers require for listing my company for sale?

The listing form will ask for all the documents we need in order to do basic due diligence on your company. You will need the following:

• Company Name & Reg No
• Link to your company at Companies House (you can find that here)
• Your full name
• Full name of any other Directors or Shareholders
• A brief description of your business activity
• Website (optional)
• Contact information
• Any other pertinent information you think may help a sale
• Your price for selling your limited company

All of this information is automatically prompted on our interactive listing form.

Financial statements

You will need to have financial statements ready for listing your business sale and listing. On the listing form there will be space for you to provide information required. Just follow the on screen prompts in the listing form.

Where will my business be listed for sale?

All our businesses for sale are listed with our partner platform listing UK limited companies for sale. We have an active buyers list of over 8,000 global buyers looking for UK limited companies with a trading history.

(Even if you are struggling and your business is facing insolvency we have a solution for you - read more here).

What happens when my business finds a buyer via your platform?

The buyer will fill in a form and commit to purchase your business. At the point the buyer commits to buy you will receive an automated contract for sale to the email address you registered with our platform.

You have 3 business days to accept or refuse the proposal. You can refuse the buyer's offer for any reason, and you will not need to pay any fees.

What kind of paperwork does Cash Business Buyers use to bind the Seller and the Buyer?

We use our own proprietary paperwork along with all the standard UK Government forms for the transfer of ownership, shares, registered address etc. You can find examples of these forms at Companies House website.

Why is the buyer's name and info hidden on the contract?

We get paid only when we find a buyer for your business. How we find our buyers is part of our intellectual property and so we will keep the identity of the buyer hidden until you agree the sale. Remember, the buyer will be paying the price you have agreed to sell for, so it's really just a formality.

As soon as you have signed and accepted the automated sales terms contract you will receive further information with the details of the buyer.

Who informs Companies House about the changes to ownership of my Ltd company?

The buyer will inform Companies House of the necessary changes. Once this is carried out (usually within 7 days of sale) you will be able to check on Companies House website to confirm the changes are live.

Usually, changes to the Companies House database are in real time and there is no delay in adding the new owner information and removing your information from the records.

How does Companies House get updated?

It is the responsibility of the buyer to update Companies House when the company ownership changes hands. At the point of signing the contract you will need to pass the Companies House access codes to the new owner in order for them to update the information on Companies House database.

Please note that if your accountant or bookkeeper is the person holding the access codes, you will need to request them to provide them to you in order to pass to the new owner.

Can I change Companies House information myself instead of the buyer?

No, it is the new owner's responsibility to make the changes to public records. You can check Companies house website at any time to confirm that changes have been made.

However, if for any reason the buyer delays the changes to Companies House records, you may still use the same codes to access and remove your information directly from the database.

To date we have not had any incidents of buyers failing to update Companies House records and our system sends them reminders to ensure they do. Most buyers are happy new owners and keen to get their information recorded within a days of finalising their purchase.

Who informs HMRC of the change of ownership?

If you have an accountant you can ask them to inform HMRC of the change of ownership. However, it is also the responsibility of the buyer/buyer's accountant to contact HMRC regarding the new ownership and contact information.

Do I need to tell the bank about the company sale?

Yes, it's a good idea to inform your bank about the change of ownership. All banks have forms for changing the mandates and you should ensure that the bank removes you from any documents or liabilities.

What happens to money in the bank accounts?

All money in the accounts belonging to a limited company are assets of the company, not of the directors or shareholders. Therefore, any bank balances should be listed on the assets of the company you list for sale and should remain in place for the new owners to utilise.

What about unpaid taxes or VAT?

As with bank balances above, the companies liabilities, including possible VAT refunds stay with the company and will carry over to the new owners.

Can I cancel my listing for sale?

Yes, you can cancel at any time prior to entering into a binding sale agreement with a third party buyer. Contact Us Here

What about Personal Guarantees?

If you have personal guarantees then these are obviously connected to the Directors or shareholders who are selling the company. However, it is often possible to remove your PGs once you sell the company. There is no guarantee of this, but we have a handy guide to the 10 things you can check to see if your Personal Guarantee can be upheld by a lender or creditor.

You may be surprised to find that you can often walk away from your PGs.

What liabilities do I have once my UK limited company is sold?

You have no further liability once you are no longer connected to the company that you have sold. The only caveat to this is in the event that any Directors of the company are later found to have committed fraud during their ownership, but this is very difficult and expensive action for a creditor to take against a former Director and is only likely in cases where Directors knowingly acted against the interests of the company during their time as Directors.

Can I list my company for sale on other business for sale websites?

Yes, absolutely. If we cannot sell your UK limited company then we should not get paid. It's as simple as that.