How much can I borrow?
If the business is being acquired on a going concern basis, the purchase price will include fixtures & fittings and goodwill. We can obtain up to 70% of the purchase price, or valuation which ever is the lower.
If borrowing is restricted to the property value, we can obtain up to 65% of the valuation.
This can increase to up to 100% if additional security.
What are the repayment terms?
The term can be arranged to suit your circumstances, 20 years is typical, but we can arrange up to 25 years. To assist cash flow some of our panel lenders will allow interest only periods of up to 1 year.
What are the interest rates?
This largely depends on the quality of the Restaurant, the experience of the applicant, loan to value and the strength of the accounts. But typically this would range between 3 and 4% above base rate. We would search for the best rate possible on your behalf.
What will be the monthly repayment?
The table below provides a monthly cost per month per £000 borrowed on a capital and interest repayment basis.
Interest Rate |
Number of years of loan |
Interest Only (£) |
||||||
5 |
7 |
10 |
12 |
15 |
20 |
25 |
||
£ |
£ |
£ |
£ |
£ |
£ |
£ |
||
3.75 |
18.30 | 13.55 | 10.00 | 8.63 | 7.27 | 5.92 | 5.13 | 3.13 |
4.00 |
18.41 | 13.66 | 10.12 | 8.75 | 7.39 | 6.05 | 5.27 | 3.34 |
4.25 |
18.52 | 13.78 | 10.24 | 8.87 | 7.52 | 6.18 | 5.41 | 3.54 |
4.50 |
18.64 | 13.89 | 10.36 | 8.99 | 7.64 | 6.32 | 5.55 | 3.75 |
4.75 |
18.75 | 14.01 | 10.48 | 9.11 | 7.77 | 6.45 | 5.69 | 3.96 |
5.00 |
18.86 | 14.12 | 10.60 | 9.24 | 7.90 | 6.59 | 5.83 | 4.17 |
5.25 |
18.98 | 14.24 | 10.72 | 9.36 | 8.03 | 6.73 | 5.98 | 4.38 |
5.50 |
19.09 | 14.36 | 10.84 | 9.49 | 8.16 | 6.87 | 6.13 | 4.58 |
5.75 |
19.20 | 14.48 | 10.96 | 9.62 | 8.29 | 7.01 | 6.27 | 4.79 |
6.00 |
19.32 | 14.59 | 11.09 | 9.74 | 8.42 | 7.15 | 6.42 | 5.00 |
What if my accounts are weak?
Restaurant funding is still available for applicants with poor or weak accounts.
As is the case if the Restaurant has been closed prior to purchase.
The lenders will simply rely upon the 90 Day Freehold Value and lend up to 70%.
The interest rates will be higher, but lenders can offer interest only to assist cash flow
What costs are involved?
Can you help with a deposit?
The maximum loan we can achieve is usually 70%, and you need to contribute 30% plus costs (covered above). Some lenders will take a second charge on your private residence to cover this amount.
Alternatively we can assist you with refinancing your current residential property, to release additional equity.
What are the timescales?
In most cases, we can obtain an agreement in principle within 48 hours.
A valuation will take up to 2 weeks to arrange.
The rest is dependent upon the speed of your solicitors (and sellers solicitors if a new purchase).
This can be 2 to 3 weeks.
What do I do next?
Call us, email us, or submit an online enquiry request.
One of our experienced consultants will then contact you and discuss your requirements in more detail.
Use our Online Enquiry Form or Contact Us on 0800 0735353 to arrange an initial visit with one of our consultants.