Leasehold Finance

Lending for business premisesProperty Lease Ownership

 

Lease finance can be confusing and have several meanings. For eample there is leased financing on company equipment or plant machinery. This would be with a hire purchase agreement or a leasing contract. This is also know as asset finance. Alternatively there is lease for a property which is known as leasehold.

High cash turnover retail businesses located in England and Wales may be able to raise finance for purchase or refinance if they have a lease or freehold in place. Such businesses might include for example curry house or Indian restaurant, supermarket, convenience store, pound shop, Chinese takeaway, cafe, dinner, kebab house, fish and chip shop, pizza house and newsagents, not forgetting a pub or public house.

These type of shops normally have a leasehold tenancy arrangement with their landlord. Turnover is generally high. Though high street lenders normally would prefer to lend to them potentially after a few years of trading and ideally if they have had their business account with them. This then can allow the bank to assess how the business has preformed looking for consistency. This obviously would give the lender more confidence as the shop appears a lower risk and has a track record of good trading.

Often these type business run long for hours and are open seven days a week creating a high cash turnover. Labour may be cheaper with the business owner being hands on along with close family members. And staff who are not afraid to work extremely hard long hours. This will generally result in a strong business.

Also demand for these type of businesses is high. Take for example a newsagents. It may open very early in the morning and have good trade with customers coming in from going to work. Then a good flow of walk by day traffic followed by a steady evening trade that could last until 11pm. So would generate a high cash revenue.

Cash Retail Business loan

Here is a list and example of other retail outlets that may be considered including an off licence, post office, clothes or fashion boutique, bistro, inn, tavern, hamburger bar, wine bar, brasserie, snack bar, petrol station, disco or night club. hotel, motel, gym or fitness club, children’s nurseries, care and nursing home which are for commercial lending or business finance.

Such businesses above may be looking for help from the list below:-

Finance for a lease

Or if you own the lease of your business you may want one of the following:-

BUY THE FREEHOLD OF A BUILDING
BUY A SECOND BUSINESS
BUY OUT ABUSINESS PARTNER
DISCHARGE BANK OR PRIVATE LOANS
DISCHARGE AN OUTSTANDING VAT DEBT