Financing B&B’s – projections and goodwill

Financing B&B’s

Most commercial lenders tend to just look at the bricks and mortar value of B&B’s, hotels etc.

They also don’t consider projected income which can leave borrowers short when there is significant goodwill or they have a small deposit.

We have a number of high street lenders prepared to take a view as follows:

• Lending up to 70% of the bricks & mortar and goodwill valuation
• Another lender will consider bursting the 70% valuation and go up to 85% if the accounts and case profile are very strong
• Projected income can also be considered – for example; where the property being purchased has poor accounts, but the purchaser has a good track record and well reasoned projections.

At Promise we are seeing a lot of this type of business and, whilst some of it will fit the secondary lenders (due to credit profile etc), we are getting more success with high street lenders and far better rates.

If you have a B&B or small hotel enquiry, purchase or refinance, please make Promise your first port of call.

We are happy to do everything on the case and fully liaise with your client so you can do something else.

www.promisemoney.co.uk

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