Funding 4 Licensed Premises

Business/Property Type Public Houses Wine Bars Hotels Guest Houses Inns	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. PUB PURCHASE - COMMERCIAL MORTGAGE + BREWERY LOAN The Question: Could we arrange funding for a client to complete the purchase of a Public House in the Cotswolds? The Proposal: Our clients who were experienced in the licence trade wished to purchase a freehold public house in the Cotswolds. Their intention was to sell their existing property and inject the proceeds from the sale of this property into the new venture. The purchase price of the business and property was £265,000 and our clients required a loan of £200,000 in order to complete the purchase. However there was a lack of accounting information available from the vendor and therefore a specialist appraisal of the business was required prior to instructing our lending principals to consider the application. The Requirement: Our client required a loan of £200,000 which equated to 100% of the freehold value of the property as indicated by the valuation we had carried out on the clients behalf. The Solution: In order to proceed with this application we structured the clients funding requirements in two parts. Firstly we arranged the main debt finance with one of our lending principals on the basis of the business appraisal we had carried out. However there was still a shortfall and the next step was to negotiate a brewery loan on the basis of the barrelage of the pub. This facility combined with the main debt finance enabled the client to proceed. The Benefits: The first benefit was that we were able to negotiate a funding package despite the fact that very little accounting information had been made available by the vendor. In addition we structured the deal whereby the funding equated to 100% of the freehold value of the property.

2. GUEST HOUSE - FINANCIAL RE-STRUCTURING The Question: Could we arrange funding to enable a client to restructure an expensive vendors loan on a Guest House they owned in West London? The Proposal: We were asked to assist in the restructuring of a vendors loan which our client had taken out when purchasing a 13 bedroom guest house some 12 months earlier. The vendors loan, whilst at the time enabling the client to proceed with the purchase was at an interest rate of 12% which was creating cash flow difficulties for my client. In considering this proposal we were advised there were no audited accounts available for the business as our client was only coming to the end of her first year of trading. The Requirement: A loan of £500,000 was required to carry out a refinance of the vendor's loan. The Solution: Having carried out an appraisal of the business and a valuation of the property; a projection for the next 12 months of trading was prepared which enabled one of our lending principals to assist the client to restructure their funding as required. The Benefits: An offer of £500,000 was arranged at an interest rate of 2% over base rate. This meant a saving of approximately £950 per month on our clients cash flow! The crucial point for our client was that the cash flow saving enables them to fund the next stage of their proposed development of the business which was an important issue for them.

3. RUN DOWN HOTEL - LOTS OF POTENTIAL The Question: Could we arrange funding for a client to purchase a run down loss making hotel with great potential? The Proposal: We were approached by a client to assist them to raise funding to purchase a 35 bedroom hotel in the north of England. It quickly became clear that whilst our client was an extremely experienced operator, the hotel being purchased was very run down, was trading at a loss and the property required considerable refurbishment works both internally and externally. The Requirement: A long term commercial mortgage of £270,000 was required in order to complete the purchase of this business. The Solution: We sourced several lenders who were prepared to assist with the funding. We then instructed a business appraisal report to be carried out to enable us to establish and quantify the potential of the business once our client had taken over and implemented their proposals. Upon receipt of the report we arranged funding with a lender in line with the clients' requirements. The Benefits: Due to the refurbishment work required there was a built up period as far as the business was concerned, and as a result cash flow was a vital consideration in putting a suitable funding package in place. Therefore a 6 month moratorium on all capital and interest payments was negotiated, together with a 5 year fixed rate of interest. Both these aspects were vital for the client and made the difference between success and failure for this new venture.