Business Mortgages - for a pub

ptrichardson

Hi,

I've been wanting to quit IT and buy a pub for years - and one has just come up for sale near me that I'd interested in.

But I have no clue where to start when it comes to arranging business finance

Does anyone know of good companies that I can approach to assist? Of course, I can google - and I have - but I've no way of knowing if they are sharks!

Would really appreciate some help.
Many thanks,
Peter

Brock_and_Roll

Are you buying the freehold or just a lease from the likes of Enterprise Inns?


If the former, you will need a deposit of circa 20%-25% of the bricks and mortar valuation of the property (not the business).


If the latter, it will be very hard to get finance unless willing to offer suitable security such as a charge over a house with sufficient equity.

ACG

Is it a freehold or leashold pub?
If it is leasehold are you tied to a pub company? They may allow you pay them in instalments.

If not, you need a commercial mortgage/commercial broker.

As someone who has owned a pub, I took a lot from it but I have never worked as hard in my life. Before the recession and smoking ban it was a cracking income but you do work for it. We left when we had 3 lads on the roof with hammers and crowbars...on the second occassion. And our pub was in a nice enough area.

If it is tied to a pub company, you need to look at why they are not running it themselves.

ptrichardson

Sorry for not getting back. Been a hectic week and haven't been online much.

Its a freehold - a little village pub.

I've probably got a deposit from my savings, but ideally I'd like to spend some of that on the renovation - it needs about £50,000 spending to re-arrange the layout. Possibly more, I'm not sure.

Does anyone know a reputable firm who can assist to arrange the finance?
As I said, google throws up a few, but no idea if they're good guys or robbers!

ptrichardson

Bump for help

Thrugelmir

Have you obtained copies of the last few years trading accounts?

Have you prepared a business plan including financial forecasts?

With commercial lending the small business unit of your bank maybe a good place to start. They'll provide valuable assistance if the plan is viable.

Alternatively if you have a branch of Handelsbanken near you. They offer a very personalised service with real bank managers.

robbyfine

Agree with Thrugelmir that a good business plan is the first thing you need to get a loan for your business. If you don't know where to start from, read this article, please https://www.ogscapital.com/services/bank-business-plan . Anyway, I wish you good luck!