Hospitality Finance FAQ's

Who do you lend to?

We can lend to sole traders, partnerships and Limited companies.

How can I get a loan?

In order for us to help you get a business loan or other form of suitable credit, you will need to complete our online enquiry form that asks for the basic information we need to move your enquiry forward. Alternatively, you can telephone us on 020 7123 1234 to discuss your requirements.

Do I need to provide security?

Most lenders require collateral security for example a property or other business assets. Others require directors to provide personal collateral and a personal guarantee. Unsecured business loans as the name implies, usually require a Directors personal guarantee. Unsecured loan applications – though more expensive – can often be faster as the lender does not need to evaluate assets.

How do lenders differ?

The lending criteria for lenders can vary dramatically. They differ in many ways, for example: their appetite to lend to the hospitality sector; interest rates; fixed and variable rates; flexibility; credit products offered; how they assess affordability; security requirements and much more. We navigate through this minefield to save time and ensure you have the right credit facility to grow your business.

How much borrowing can you source?

This really does depend on the many factors. But in summary, a lender bases their decision to lend on the experience of the proprietors; security value; track record; business performance, affordability and a good business plan. If strong on all these criteria, 100% financing on very competitive rates is achievable.

Can I still get finance if I have a blemished credit record?

Yes you can. Whilst it is not ideal, we will look to understand your business, overall circumstances and your credit record and advise on the funding options open to you. We would strongly advise to inform us of any outstanding creditors, CCJs, arrears etc at the outset as this can save time, avoid unnecessary costs during the loan application process and position ourselves to place you with the right lender.

What is the hospitality finance credit process?

1. The initial enquiry

The type and amount of information we need at the outset will depend on the client and complexity of the case. But generally, this stage requires us to carry out a fact find exercise understand:

  • The borrower, the business and experience
  • The project and business goals
  • Contribution and borrowing requirements
  • Purpose of borrowing
  • Security being offered in any
  • Income, other assets and expenditure
  • Credit history
  • Latest financial accounts and projections
  • Review the business plan if you have one

If you don’t, we can help you create one

The accuracy and quality of the information we gather at this stage will help us and the lender process your application faster to loan offer, completion and get the best loan terms. We also discuss how we work, costs and process to completion.

2. Approach lender

Using the information gathered from the fact find, we then decide the options available to you and where required write a detailed proposal to the lender with the information they need to assess and approve your application and issue an agreement in principle or offer letter. In many cases, particularly for unsecured loans, we can have a decision within 24 hours and money in your account in 48 hours.

Valuation and legal instruction

Where collateral security is required and on acceptance of the offer, a valuation is instructed to confirm the value of the property and equity. The valuation fee must be paid to the valuer in advance. The lender and borrower appoint a solicitor to act on their behalf to complete the security. The borrower is responsible for both the lender and their own legal fees.

3. Drawdown

Upon satisfactory valuation, completion of the legal work and satisfying loan conditions, the lender will release the funds to your solicitors to complete the transaction.

Contact us to discuss your borrowing requirements

Call us on 020 8988 1102

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