Borrowing options

Devo

Good morning from the Philippines!
This may be a long post so apologies in advance...

I moved to the Philippines 6 months ago now to help my father with a new business venture but we've now run out of 'cash' so I'm wanting to know about any available sources of income.

Our business is a mini-shopping mall which consists of a restaurant (like McDonalds), a supermarket and 10 shops. Our mall is 95% complete but we've used up all of our savings etc and so need to secure some money to finish it and open. All of the shops are already let to tenants and the restaurant & supermarket will be big hits where we live.

Realistically we need around 25k to finish everything and open. The stocking of the supermarket alone is going to cost around 15k. We have looked at borrowing the money here and can do so but the longest bank loan available is only over 3 years so the monthly payments are high. Our business should make enough money to finance these payments but if ti doesn't we'll lose everything as the bank will have the deeds to our business, land etc. We are currently looking at an interest only option which would be perfect and have a meeting to discuss this today.

In the UK we have the following collateral:

House in south west worth c500k
Flat in Manchester which brings in 700 a month rent

Both of these are mortgage free and the house is currently up-for-sale which if it sells will solve everything. The problem is we could be waiting indefinitely for that eh. The rent from the flat basically pays the running costs on the large house where my father's ex lives so we can't save any of this money or use it in anger. My father also has a small annuity which pays around 300 a month and a HYP valued around 75k but he can only take 5k from this each January by selling shares.

So... are there any options open to us in terms of borrowing in the UK? I know it's terrible but I was toying with the idea of using my credit cards to finish everything off and pay back the minimum payments initially until we can overpay once the business is running.

TIA

pamstretched

I am not an expert..just an idea to think on
Depending on value of shops ----
Maybe you could offer a rent to buy to the shop tenants maybe offering shared ownership with yourself having priority purchase if they want to sell their part later. If one or two take up the offer you might raise enough finance to complete the supermarket.

Loan on the Uk house might be stressful and use up the equity - maybe you could reduce the price or try an auction sale.

jon_boy75

if you're mortgage free on the Manchester flat, take £25k equity out and have a small mortgage, which you can overpay

Devo

But is it a viable option to release some equity in the UK when you have no proveable income there in the form of a job etc???

jonesMUFCforever

Devo wrote: »

But is it a viable option to release some equity in the UK when you have no proveable income there in the form of a job etc???

I can't think of a better idea. Can you?

Devo

jonesMUFCforever wrote: »

I can't think of a better idea. Can you?

Sorry.... what I mean is can we entertain that as an option or to do it do you have to prove income etc?

jonesMUFCforever

You can try - the worst thing that can happen is that they turn you down.