Is this possible

Major.clanger

Hi all looking for advice… I have not been working for past 5/6 years as I ended up caring for my mum.. she has now past away and I have been left with a house worth £330000.. I have seen a campsite and country pub for sale with a turn over of £350000 per year for £900000 .. I have a poor credit score is it possible for me to get a loan against this?

[Deleted User]

Yes, but only because the credit score doesn't matter. What is important is your income and credit history.

Where does your income come from currently?

£570k (assuming you sell the house) is a big ask. If you're planning to run it as a business, you're going to need to talk to a business lender as it's more complicated than a standard mortgage.

Major.clanger

I intend to sell the house as soon as possible and right now I have no income.. looking to buy the business to create an income.
can someone recommend a business lender suitable for my needs?

Ebe_Scrooge

Any of the big banks will have a business lending department - probably your own bank might be a good place to start.  But you'll need to do some homework first - at the very least come up with a workable business plan, along with realistic figures for previous and projected turnover, costs and profit.  Have you ever watched "Dragon's Den"?  OK, it's spiced up a bit to make good TV, but the hardcore financial questions that the applicants get grilled on are the sort of thing you need to have worked through beforehand.

Exodi

Major.clanger said:

Hi all looking for advice… I have not been working for past 5/6 years as I ended up caring for my mum.. she has now past away and I have been left with a house worth £330000.. I have seen a campsite and country pub for sale with a turn over of £350000 per year for £900000 .. I have a poor credit score is it possible for me to get a loan against this?

I don't mean to be rude, but just want to make sure that you're not mistaking turnover for profit?

Without having access to the company accounts and having an understanding of the profitability for the business and reason for the sale, I would act with caution.

People can be quite impulsive when they suddenly receive a large sum of money...

Major.clanger

Accounts for the business for the year 2019 show a turn over of £378000 and a profit of £101000

Exodi

I'd imagine the sale includes the freehold of the pub and land - what is the total value of the assets?

The asking price compared to the profit seems quite high if there aren't sizeable assets in the mix.

Major.clanger

Yes the sale price includes freehold public house set in 6 acres of land with 15 sited static caravans 1 log cabin and 55 touring pitches

Grumpy_chap

Key to securing finance will be your business plan and evidence that you have the skills and experience to deliver that plan.

warby68

Pre pandemic financials?

Major.clanger

Yes I have the accounts from past 4 years