Latest News on Bank Lending
From our experience Banks are still lending. The High Street Banks that we deal with are regularly granting new loans particularly in the market where we operate by arranging finance for clients who are often buying a business for the first time. Our introduction will secure very competitive terms which ensures that loan repayments will be kept as low as possible.
EM&F Business Finance has enjoyed a sustained period with funding being approved for both freehold and leasehold / goodwill & asset enterprises.
With leasehold cases in particular the “Enterprise Finance Guarantee Scheme” provides a Government backed guarantee to a wide range of businesses with loans ranging from £1,000 to £1m. Here is a recent example:
- Client acquires a local leasehold Post Office for £120,000 including stock & fees. He has £20,000 to contribute and plans to move his existing profitable newsagents business into the same premises. We prepare a business plan with financial projections and successfully arrange an “Enterprise Finance Guarantee Loan” of £100,000k over 8 years with a High Street Bank.
Where freehold businesses are concerned many lenders will only lend against a % of the bricks & mortar value typically 70%. Very recently however we have arranged loans that represented 70% of the market value requiring a significantly lower deposit.
- Client agrees to buy a freehold convenience store for £290,000. We prepare a lending proposition including a detailed CV that overcomes any reservations that lenders may have over the lack of any direct experience in this business sector. Bank agrees a loan of £200,000 plus fees (70%) over 20 years at a variable rate of 4.39%.
Now is the time to take advantage of the excellent opportunities currently available in what is certainly a buyers market. To obtain information on the borrowing terms that we could achieve for you please call us for an informal discussion.
Contact the finance office on: 01834 849793 or 0845 094 2550
Visit our web site: www.emfinance.net
