Funding 4 Catering


Business/Property Type Restaurants - all types Cafes Fish & Chip shops Fast Food units Sandwich Bars Brasseries/Bistros	Loan to Value % Up to 75% of Market Value Up to 100% funding can be considered with additional security	Interest Rates From base rate + 2%	Loan Term Up to 20 years can be considered.
Comments Accounts not always required Valuation or specialist business appraisal commissioned by us Additional information required. - C.V. on each applicant. - Asset & liability statement. - 6 months bank statements.



1. FAST FOOD CHAIN - EXPANSION The Question: Could we arrange funding to assist a client running a chain of fast food outlets to purchase a further retail unit as part of his expansion plans? The Proposal: Our client had over the previous 6 years successfully built up a number of fast food outlets in the South London area. As part of his continuing expansion he now wished to purchase a freehold unit, obtain planning for change of use and then carry out the necessary refurbishment work prior to commencing trading. Our client required funding in order to complete the purchase and refurbishment of the unit. The Requirement: The requirement was for a total facility of £75,000 secured against the freehold of the unit being purchased. The Solution: Following a meeting with the client we assisted him in preparing a profit & loss and cash flow forecast for the new business backed up by accounts for his existing business. In addition we had a valuation carried out on the new unit and were then able to negotiate funding as required by our client. The Benefits: The key aspect for our client was that he wanted a long term (20 years) commercial mortgage put in place which did not effect his day to day arrangements with his clearing bank. Whilst he had a very good relationship with his own bank he felt it prudent not to have all his "eggs in one basket".

2. INDIAN RESTAURANT - 90% OF PURCHASE PRICE The Question: We were introduced to a client who had successfully run his Indian restaurant for over 10 years from leasehold premises. He now had the opportunity to purchase the freehold - could we assist in raising the finance? The Proposal: Our client had the opportunity to purchase the freehold of his existing unit at a discount to the valuation as the tenant in situ. His borrowing requirement was for £95,000 which equated to 90% of the proposed purchase price. Our client had approached several lenders prior to approaching ourselves however had been declined due to his credit history. There was a sizeable county court judgement registered in his names relating to a previous business venture in which our client had been involved with a partner. However in discussions it became clear that this judgement had arisen during the break up of the partnership and was not as a result of our clients direct involvement. The Requirement: Our client required a loan of £95,000 to complete the purchase of the freehold of his existing premises, which equated to 90% of the purchase price. The Solution: We instructed a valuation to be carried out on the property to confirm the valuation and also to comment on the discounted purchase price. At the same time we had to overcome the problem relating to the county court judgement against our client. We were involved in lengthy negotiations with our client, his solicitor and the institution who had registered the judgement in the first instance in order that we could ascertain the precise position and also to try and negotiate a settlement. As a result of our negotiations a settlement was reached which enabled the funding for the property purchase to be agreed and the deal to proceed. The Benefits: Our client prior to meeting us had tried several other brokers and lenders without success. The key point was that the client required more than just his finance arranged. He needed the benefit of a complete negotiating package - we were involved in nearly 9 months of negotiations with the various parties to reach a satisfactory conclusion. Needless to say the client was delighted.

3. PURCHASE OF CAFE - SHORT OF CASH The Question: Could we arrange finance to assist our client to purchase a café in North London? The Proposal: Our client wished to purchase a 30 cover café which had traded for many years from freehold premises in North London. Whilst our client was injecting some cash into the purchase he required a loan which equated to 95% of the freehold value of the property. However this was a strong well established business with good accounting information available and we were confident of being able to arrange the required finance. The Requirement: Our client required a loan of £110,000 in order to proceed with the purchase of this business. The Solution: We instructed a valuation to be carried out and following receipt of this we structured a funding package in line with our client's requirements. As a result of our negotiations we were able to secure the level of funding required whilst in addition being able to agree a working overdraft facility to assist our client with the day to day running of the business. The Benefits: The main benefit to our client was that he had a minimum amount of cash to inject into the transaction and as a result required a higher level of gearing against the property. However we were able to structure his requirements and in addition negotiate an overdraft facility to assist with our clients initial cash flow requirenments.