New business-bank wants to secure loan against the house eek!

princessamy86

Very exciting news! They have the ok from a different bank, so no money against my house yay! Thanks savvysue, they have factored it in but it shouldn't be too bad as every summer students return home anyway, and it's not going to be exclusively aimed at them. I'm quite excited now! Thanks to all for the advice

qw3rt7

Er, just a few questions. You say they are renting from a private landlord, Is the property they intend to rent actually a bar/nightclub atm? If it is, is it a free house? Do they have a supplier lined up?
My concerns are that many people go into the licenced trade with little more than blind optimism and an idea of what they like when they go out on the p*ss. The trade is infact heavily regulated and taxed, and currently in a terrible state in general, with 100s of established business's going down the pan every month. Friends of mine run a long established bar, reasontly featured in a popular broadsheets top pubs in the uk. Profits are about 1/15th of turnover, with efficient management.
Please do not go into this with your eyes shut, and if at all possable go limited. Even if your partner doesnt secure a loan on your propery, if you are joint owners the property could be at risk.

princessamy86

It was set up to be a bar/nightclub last year, yes it's a free house. I have had a personal licence for 3 years now and worked in pubs since I was 18, so I do have some experience of what it's like, although I appreciate that it was from an employees point of view. They've done all their research, they've got a supplier lined up and everything seems hunky dory at the moment (I know! It won't last long!). 1 partner has been managing a bar in town centre for the last 18 months-his best mate owns it and is offering them free consultancy for 6 months so it's not like they'll be left to flounder.

princessamy86

Forgot to say they are set up as a ltd company, and the house is going in my name to safeguard it.

DCodd

Congrats princessamy86!! Good luck wish you all well:beer:

princessamy86

Thanks DCodd! I'm going to have to stock up on the red bull, 3 nights a week at the bar, 4 days a week at work and 2 days a week at uni :eek:

COOLTRIKERCHICK

glad you have sorted it out, but dont forget, pubs and clubs can be a victim of the what in and whats not, i have seem pubs and clubs full to the rafters as they are the 'in' place to be, and within a few months they are empty as its not cool to be seen in there..

its a hard business, and i hope that hte business can manage to pay 3 partners and the bar staff etc...