As the pandemic hit, many businesses in the hospitality sector were hit hard, and obtaining financing had become more difficult than ever. However, with the right lender and expertise, some were still able to secure the financing needed.
We had the opportunity to help a local bar refinance their business loan. They had initially made an inquiry with us before the pandemic hit, but we had to shelve the application and keep an eye on the market. Luckily, we were able to agree on lending with our partnered lenders, who are now accepting that 2020-2022 were challenging years for everyone. As long as businesses were profitable before Covid and are now profitable again, lenders are happy to entertain lending proposals.
During the application process, we also found out that certain lenders don't apply as stringent criteria for certain levels of funding. This inside knowledge helped us secure a favorable loan offer for the local bar.
Details of the deal:
Loan: £450,000
Term: 10 years
Rate: 4% above Bank of England base rate (BBR)
Security: 1st legal charge over premises
If you're in the hospitality industry and looking to refinance your business loan, don't hesitate to get in touch with us. Our team of experts have specialised experience in providing commercial finance for the hospitality sector, and we can help you secure the financing you need to keep your business going.