I need £120000!

ajbrynoffa

.....to buy the lease on a pub.Now we`ve done all our groundwork and business planning so we just need the money!I`ve got about £60000 equity in my house but will need a business loan for the other £60k.The turnover on the business is really good and expandable ,so can anyone suggest where i should go for the rest of the money?

lynzpower

is the pub a leasehold? or freehold? If leasehold then the brewery itslef should have some ideas on how to finance it.

Otherwise its your standard lenders for a business development loan I would have thought.

Can I sound a note of caution? please be very very careful when buying a leasehold pub especially one thats tied. My uncle has one and makes about 4p per pint. LUcky for him he has developed the business in other ways, booze makes no money he reckons. I would alsostrongly recommend a thorough read of the publican.com forum. Its not half as lively as here, but I was also looking into buying a public house ( tied) and what I read on there - and contact from a specific member of the site confirmed that actually it was not worth going ahead- for a number of reasons.

Im no doommonger, but the trade of a publican, particularly one tied to a brewery looked actually rather restrictive, and in effect what appeared was Id need certain ideas to get the finance ( ie a business plan) but the brewery would forbid much on the business plan so it did not conflict with other parts of its chain. Another uncle of mine works for whitbread, and confirmed this is often the case.

Anyway, enough of my doom & gloom, just go in with your eyes fully open is my advice, and dont be afraid to back out if it seems too good to be true.

Best of luck
lynz
x

jonesMUFCforever

Why not search back on the boards to when this was last discussed in great detail with you?

ajbrynoffa

ejones999 .. I did actually look back on the last thread and noticed there were no actual banks or companys reccomended which i was really after.I aalso have the actual figure needed now and a timescale which i didn`t have before .........but thankyou for your helpful comments anyway.

jonesMUFCforever

We can only give general information on here. Giving specific recomendations is against forum rules.
I'm sure a moderator will correct me if that's wrong.

No offence but your posting says that you have ''done all the groundwork'' and ''business planning'' but now to say that you are £60k short is I think a major flaw in your business planning.

ajbrynoffa

Originally i planned on releasing the equity in my house i.e. 60/70k,and taking out a business loan for the rest,however my mortgage provider won`t give me more funds as its for a commercial venture.Also having been to most high street banks they will only lend me funds on the strength of my income now and not on the strength of the last 5 years accounts of the business,which shows an average net profit of £47000.Basically i`m snookered so my dreams have been dashed.........but hey......life goes on!!

jonesMUFCforever

To be honest from what I can remember of the postings they may well have done you a favour!

ajbrynoffa

not really i was looking at a business with a £250000 turnover and an average net profit of £47000 for the last 5 years,this was on wet sales alone.I`m a chef and could realistically have seen me nearly doubling that with food sales and extra custom so i think its an opportunity missed.But thats the way it goes i suppose..back to the drawing board!

jonesMUFCforever

So there were no drawbacks then?

A_Nice_Englishman

Well you could always sell your house and rent (or live in the pub itself if it has accomodation).

However I tend to agree with ejones999 .

ajbrynoffa

I`m not prepared to sell the house and to be honest it wouldn`t happen within the necessary timescale,so i`m putting this to bed now,the mrs is very dissappointed as we could both see abright and prosperous future for ourselves and our children but as i`ve said it wasn`t to be,,,,,,,,,thanks for your comments anyway