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Public House - Commercial Loan

Sector: Hospitality & Leisure | Value: £440,000
Equipment type: N/A | Term: 5 years with a 20 year repayment profile

Client required a loan to refinance a bridging facility and fund a refurbishment of a public house

Opportunity:

Client had taken the opportunity to purchase a pub at an attractive price, which in view of the short timescales had to be funded through a bridge facility. Plans were to develop the property into a gastro pub and longer term finance was needed to repay the bridge and fund the refurbishment.

 

Approach:

Prior to the briding loan being drawn down, we had identified a longer term funder which ensured an exit strategy for the bridge before the client was committed to the purchase.

 

Solution:

A secured loan was arranged, with an initial interest only element, a 5 year term but with a 20 year repayment profile, to reduce the debt service impact on the client’s cash flow.