Funding options - Business expansion

Funding options - Business expansion

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sidekickdmr

Original Poster:

5,078 posts

207 months

Tuesday 20th October 2020
quotequote all
Hi Gang,

We are incredibly lucky to have a very successful business, even more so since covid, we just cant keep up with demand and spend most of our days turning customers away. We are also avoiding advertising and marketing as we would just annoy people that they cant come (we are fully booked 7 days a a week for the next 13 months, and have a waiting list/cancelations list of over 100 people).

Our 2nd build is getting close to being signed off now, and we are on to the stage of financing it, incredibly annoyingly, the bank have decided that due to covid their lending appetite on property isn't what it was and may not be able to help anymore, despite previously accepting us (expired offer).

Places like funding circle will only lend to you if your business had been adversely affected by covid, which seems bonkers, turning successful business's away to instead invest in those on the rocks.

Anyway, early days, but what other options should we consider looking at, that are safe secure and lower rate, long term too, 10 years +.

Lots of off the shelf asset finance, but this is a building, with foundations etc, so not really classable as an asset as such I think.

Thanks smile

sidekickdmr

Original Poster:

5,078 posts

207 months

Tuesday 20th October 2020
quotequote all
Sector is tourism.

No not a builder, but property, this would be funding for us to build another bespoke retreat (using a builder)

It would all be securable if needs be as would increase land/property value significantly

Edited by sidekickdmr on Tuesday 20th October 21:59

sidekickdmr

Original Poster:

5,078 posts

207 months

Wednesday 21st October 2020
quotequote all
Thanks all for your thoughts, certainly some things to think about,

Amount, approx 200k

As for it being a "glamping" business, this is a little different, this is a proper residential new build, meeting same regs as a new build house, so its securable and permanent, unlike a safari tent or something, think of it as a new build holiday cottage/apartment.

sidekickdmr

Original Poster:

5,078 posts

207 months

Wednesday 21st October 2020
quotequote all
Our house is surrounded by 12.5 acres of land, our house and land are mortgaged commercially.

By building this 2nd retreat, our estate valuation would go up more than the build cost, and therefore would be a securable asset.

Makes sense to use the same bank as the mortgage, but they as mentioned have pulled any investment in any projects like this at the moment

sidekickdmr

Original Poster:

5,078 posts

207 months

Thursday 22nd October 2020
quotequote all
BGARK said:
CIBILS loan - £250k available quite easily with the right story.
Currently a 5 year max term which means affordability doesn't pass, unless I was told wrong?

sidekickdmr

Original Poster:

5,078 posts

207 months

Monday 2nd November 2020
quotequote all
bump, anyone any experience with private investors in this sector, any more flexible companies worth an informal chat with?