Latest News from Everett Masson & Furby

Bank Lending – The Current Picture

EM&F Business Finance, the commercial mortgage arm of Everett Masson & Furby, can confirm with certainty that there is a healthy appetite among commercial banks to lend for the purchase of a wide range of different businesses including not only freehold and leasehold based but also internet operations.

This statement may well seem contradictory to the usual mantra that "the banks aren't lending" but our experience is that professionally presented proposals are being strongly supported on competitive terms.

The key to unlocking funding is knowing which lenders are keen to lend to which market sector, understanding the criteria each lender has to work within and having designated points of contact with experienced business managers for each lender, who themselves are targeted to achieve new lending.

An ever increasing number of deals that we arrange involve the "Enterprise Finance Guarantee Scheme", briefly this provides the lender with a government backed guarantee in situations where no other security is available but the lender is satisfied with every other aspect of the proposition. EM&F Business Finance are well experienced in handling these special scheme loan applications consequently there has never been a more compelling reason for using the services of a good commercial finance broker than at present.

Every single lending proposal is different given that each borrower's circumstances will never be the same as will the business they are buying. For that reason there is not one lender that can fit all circumstances and EM&F Business Finance report that to meet clients' needs they constantly review the terms offered by a wide range of active commercial lenders to ensure the terms negotiated match their client's needs.

They also report that a significant number of their clients are new entrants to the business sector but have gained lender confidence by working closely with their broker to produce a robust business plan, addressing not only the positives of their proposal but also taking a realistic view in addressing potential weaknesses.

In most cases a cash deposit is an essential element towards the purchase. Typically this will be between 30% & 40% of the purchase price, although other property may be used as additional security in lieu of cash.

The business must be able to demonstrate that it can support the amount borrowed, not solely based on current interest rates but by factoring in a higher rate to assess the outcome of future increases in bank base rates. This is referred to a "stress testing" and may affect the amount that can be borrowed.

Having identified that the proposal is within lending guidelines EM&F Business Finance will prepare a robust presentation to support the deal to include a business plan which should include a SWOT analysis and cash flow forecasts as well as a profile on the borrowers to include not only their business acumen but also their potential drawings needs for the business.

The message from EM&F Business Finance is that if you are planning one of the most important purchases of your life then take the time to talk to a good commercial mortgage broker who can make sure you have the best possible chance of success.

Call us today on 0845 0942550 or visit

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