Business Purchase Loans
If you have approached your bank with regard to a business purchase you have probably discovered that they will only lend a percentage of any underlying property value.
It is possible to buy a business that includes a commercial property as part of the purchase via a short term bridging loan and refinance later.
This funding option helps in situations where you have some cash but not enough to make up the difference between any bank offer and the actual purchase price. If the business is profitable and includes a freehold or long leasehold property then we have a specialist bridging finance lender that will consider lending against a business valuation and not just the value of the property.
Using this method it is possible to borrow up to 100% of the purchase price without any extra security subject to the overall loan not exceeding 70% of the business value. Once the purchase is completed and a relationship has been established with the bank then refinancing should be possible in a 6-12 month period, thereby providing an exit for the commercial bridge.
Types of business that may be acquired via this facility include care homes, hotels, public houses, sports & leisure facilities. Unfortunately this product is not available where the commercial property is on an short lease where a mortgage cannot be arranged.
Please note that this facility is intended for owner occupiers only and cannot be offered for investment purchases. Applicants and businesses are assessed on individual circumstances and the potential for refinancing, i.e. there are no set criteria. Our minimum loan for this facility is £200k.