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is there still good finance deals out there for first time business buyers??

hugh stirzaker
Posts: 2
10/07/2008 00:36:51

hello,

I am shopping around for a business,and have so far have found two options availible to me :buy a business (Thai rest..)with less that acceptable books and try to turn it round-I can afford this without finance
Or borrow 75% and buy an exiting business (cafe) with a health turnover and fairly health profit margin-I would need to borrow 30k on that one.
I am very new to this world and would welcome any thoughts.....

1 Reply
Jamie Goldsmith
Posts: 126
10/07/2008 14:34:39
The commercial finance sector is very conservative at present. Leasehold deals at higher loan to values are notoriously difficult to fund. If you can buy the under-performing business for cash it might be the better option. The other Cafe turning good profit might attract funding up to a maximum of 50% of the purchase price inclusive of stock and upfront rental payments. Landlords usually require 3 - 6 months rent upfront. A word of caution, even at 50% LTV most lenders will press for some form of additional security in the form of a second charge against property owned or mortgaged. If you need further advice please reply to the forum. I am not accepting leasehold business enquiries at present but I would be more than happy to offer further assistance.

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