Coronavirus: The latest from MSE
The official MSE guides: UPDATED MSE Coronavirus Guides
FURLOUGH & ANNUAL LEAVE FAQ
REGULATOR LIFTS RESTRICTIONS ON WIRECARD
FURTHER HELP FOR OVERDRAFTS, LOANS AND CREDIT CARDS CONFIRMED
Starting a business - bank funding v private investment
5 replies 41 views
If you were looking to start a buiness that involved needing to purchase some land and buildings up front, then development cost to turn them into premises, then an income stream from 6 months onwards, what are the funding options. Does it all need to be raised from private investment or will a bank say loan 50% or more of the premises value as a commercial mortgage secured on the property? It would be useful just to have an idea of LTV and potential commercial mortgage rates when you don't already have an up and running trade.
Say if the property cost was £600,000, the development costs £50k and then potential profits in the region of £100k-200k per annum.