Background

Sector – Hospitality

Very successful restaurant in the North East was looking to purchase their premises to expand and diversify. The business plan was to buy the property from which they currently trade and develop some office space into a bar.

Challenges

• Business was very well established, however, due to recent expansion, the accounts wouldn’t demonstrate debt service cover.
• The property required development which most commercial mortgage providers were not happy to sanction.
• Sector is difficult to fund due to wider issues in hospitality.

Solutions

Facility: Property bridging loan
Line size: £392,000

• A bridging loan was secured to allow the client to develop the building and provide time to build profit until refinanced with a commercial mortgage.
• Facility was agreed on a 12 month basis, however, funder is happy to renew if there’s a requirement from the client.