A number of specialist lenders have for many years provided commercial loans as a means of hotel funding.
Typical properties include commercial and related licensed business – public houses, restaurants and guest houses.
Whether for first time buyers seeking to purchase their ideal change of lifestyle business, or for more experience multiple operators seeking to acquire more business for their portfolio, a wide range of commercial and business loan facilities is available.
Funding packages available include business purchase loans, typically available for up to 70 per cent of the purchase price.
Even up to 100 per cent is possible when additional security is offered, i.e. in circumstances when another business is involved.
For existing business owners funding is often required for the development of additional letting accommodation and facilities, and/or the refurbishment and upgrading of existing facilities.
Flexibility is often required by borrowers, who typically seek to borrow over a longer period of time, thus reducing outgoings, and allowing surplus funds to be used in improving facilities.
Most lenders are able to accommodate this, and further assist by offering initial interest-only facilities in addition to the more traditional capital and interest repayment structure.