Latest News from Everett Masson & Furby

Latest News on Bank Lending Spring 2011

Despite what you read in the papers or hear on the news the Banks are still lending in the commercial market but our banking contacts tell us that although ample funds are available it is more a matter of there not being the demand to match from good quality applicants for profitable businesses. Our experience at EM&F Business Finance confirms that loans are readily available following a run of successfully arranging finance for potential purchasers 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 to a minimum.

EM&F Business Finance has enjoyed a sustained period with funding being approved for both freehold and leasehold / goodwill & asset enterprises.  read more

There are over 60 commercial mortgage lenders in the UK but most of them will not lend across the complete range of business sectors. They differentiate by quoting from a wide range of “Loan to Value” percentages, some will not consider Leasehold or Goodwill & Asset loans. A few lenders are known to have withdrawn completely from certain business sectors for a variety of reasons.

As an individual it is highly unlikely that you will randomly select a lender that will not only provide you with the full amount that you require but on the best terms possible. There has never been a more compelling reason for using the services of a commercial finance broker than at present.

EM&F Business Finance has decades of experience in organising commercial finance so it makes sense to seek their guidance with a free consultation in response to which you will receive an illustration of the amount, terms and conditions of a loan that we would expect to be able to arrange subject of course to serviceability being satisfied from recent P & L accounts.

Most of the businesses that we handle are either freehold or leasehold trading concerns, here are some brief details and recent examples:

With leasehold cases in particular the “Enterprise Finance Guarantee Scheme” provides the lender with 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 Pet & Garden Supplies business for £84,000 plus stock and fees. He has £50,000 to contribute from re-mortgaging his home nearby. We prepare a business plan with financial projections and successfully arrange an “Enterprise Finance Guarantee Loan” of £50,000k over 10 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% or more of the market value including the goodwill requiring a significantly lower deposit. Here is a recent example.

  • Client agrees to buy a freehold village convenience store for £335,000 plus stock.  Bank approves a loan of £250,000 plus fees (75%) over 20 years with additional “buy to let” security being provided. The variable rate of interest agreed is 3.15% above base rate.

Having organised your borrowing facility with a lender EM&F Business Finance will also provide guidance to you throughout the process towards the completion of your purchase and deal with any issues raised by lenders on the way. We take pride in providing our clients with a highly professional service tailored to their needs.

For more information call the finance office on 01834 849793 or 0845 0942550
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