Need money for business - shall i remortgage.

capstain411

Hi all,

I have around 80k ( 12hrs shifts for last 8 years) in savings, which I did not use to pay-off mortgage as I wanted to buy my own pharmacy.

Me and my business partner have got a promising opportunity to buy a pharmacy and I need to raise 125k for my share of the business.

I was to planning use 60k of my saving and raise the other 65K my remortaging my house. My house is worth £231k and I have £118k outstanding.

Any thoughts on my plan. I earn around 60k per year.

looknohands

I wouldn't know how to advise on the mortgage side but would your business partner be cool with you working part-time, isn't always a great situation if the other partner is 100% working on the business.

capstain411

Thank you looknohands. Space only for one pharmacist at a time. My business partner will be working part-time outside our business as well.

Thrugelmir

You both intend fitting in part time work around a business where only one of you can be present at any one time. On the face of it would appear to be a considerable number of pitfalls. As will require some considerable juggling and flexibility on the part of other parties.

Nor is the net profit guaranteed either. Does this take into account the cost of servicing the debt? Lenders will be reluctant to lend on mortgage terms for business purposes. There are other alternative options available. Perhaps seek some professional advice. As I assume that no business plan has been drawn up as yet. Something commercial lenders will require in order to make a decision.

capstain411

Hi Thrugelmir,

Workload and how partnership will work has been thoroughly throught through, so not too worried on that front.

We had our business plan approved. We need to invest 25% of as personnel equity. The rest of 75% will be financed by bank with wholesaler underwriting the loan.

The query I have is with my stake. Are you referring to homeowner's loan or other product which I have missed for raising capital.

capstain411

Hi guys,

I have kind of hit a wall. I did not anticipate this to be a problem, I cannot find anybody to lend me money against my property via remortgage.

One company was happy to look but as I do not have experience of being owner refused to lend.

The sad bit is our offer for pharmacy has been accepted. I have to raise £65k within next 3 months, or I will lose this opportunity. Any idea anybody.

AnotherJoe

Look at P2P lenders?

tlc678910

A third/fourth partner or investor?

capstain411

Thank you. Will kill margins and make returns non viable to increase partners.

P2p loan will that be business loan or personal.

amnblog

Most Lenders won't let you remortgage raising extra for business investment. You are going about this the wrong way.

Engage a mortgage broker.

capstain411

Are there any lenderts who will lend in my situation amnblog. I am not expecting mortgage advise here...but through experience do you know of any lenders who have done this.