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Finance for the over 50s and over 60s

By Joshua Ejdelbaum

ASC Finance for Business

ww.asc.co.uk

Have you tried to raise business finance but have been turned down by your bank because of your age?

It’s not an uncommon problem. Many lenders have set criteria in terms of the length of their business loans, which means that if you are over a certain age, they are unlikely to be willing to provide you with finance. This can be problematic, especially as people are living longer and willing to retire later. The Government has even acknowledged this, by increasing the state retirement age from 60 to 65 over the course of the next few years, but does it seem that lenders are lagging behind?

Take one couple who we were recently able to assist - Ian and Jennifer Spence managed their business, a tea room in Chester for many years, but were looking to purchase a guesthouse for a new challenge. They were having some initial trouble in raising the finance, since they were both into their late 50s. It was only after they sat down with an experienced finance broker who was able to go through and analyse their situation, that they were able to arrange the necessary finance through the right lender.

 So what can you do if you are struggling to raise business finance, either to purchase a new business such as a Bed and Breakfast or a Café or Tea Room, or for an existing business which you are already running?

There are a few possibilities. Firstly, lenders all have different requirements and lending criteria, so just because you have been declined by a lender, it doesn’t mean that there are other lenders who might not be able to help you (although we are aware that this can be a time-consuming process, so going through a commercial finance broker such as ASC Finance, might be an option to consider). Alternatively, getting a family member to guarantee any loan, or a business partner involved in the transaction could be one solution in terms of satisfying lenders’ criteria, as the lender may be willing to consider their age into account when they calculate the possible length of any finance.

The difficulty is, that as with any form of commercial finance, each application is considered on its own merits. So if you are looking for the best chances of success, and on the right terms for you, it is important that any application is presented to the right lenders and in the right manner.

If you would like to find out more about what finance options are available to you, speak to us at ASC Finance for Business, there is no obligation for you to find out what we can do and what you can achieve by letting ASC work with you.