Products
Business Purchase (with property)
The Society provides commercial mortgages for the purchase of established businesses (often referred to as 'going-concerns'). We regret that we are unable to lend funds in order to start up new businesses.
We lend to purchasers of established businesses that have a proven, profitable track record. The purchasers must be suitably qualified and experienced in that business. This means that applicants must be able to produce three years' audited or certified accounts for a business they have owned in an individual capacity or the capacity of a director of a company in the same sector. We will also need the last three years' audited or certified accounts for the business to be purchased.
If only two years of finalised accounts are available we may still decide to lend but subject to a higher rate of interest. The rate will be reviewed once the third year of accounts are available.
All loans are subject to status and secured against business property. Sometimes, other additional security may be required.
We offer:
- Attractive interest rates (Linked to margins above LIBOR* or bank base rate, or a fixed rate).
- A flexible mortgage (click here to see details)
- Personal service
- Fast award-winning service and turn around
- In most cases, decisions made by the lending manager handling your application!
- Up to 75% loan to value for business property, such as public houses, hotels, guest houses, nursing homes, restaurants and care homes.
- Experienced lending team
- No fees charged for annual reviews.
- No compulsory insurance arrangements
Please ring our Commercial Department for information on 01733 374123
How it works
If you submit an enquiry you will be contacted by a member of our specialist commercial team. We will request certain information. Upon receipt of that information we will provide you with outline terms within 2 working days.
We will tell you if we need any further information and we will request a meeting with you if you wish to borrow more than £150,000. In other cases, we will discuss your application on the telephone, advising you of the likely timescale for the offer of any lending facility.
Details:
The documentation you will need to provide with your completed application form is listed below:
- Last three years' audited or certified accounts of the business to be purchased. If only two years' accounts are available we may be able to consider your application but you may have to pay a higher rate. Your rate will be reviewed once your third years accounts are available.
- Last three years' audited or certified accounts of the business currently being operated by the purchasers, in the case of a purchase application.
- Your last three months' bank statements and overdraft facility letter (if applicable). Six months statements will be required if an overdraft facility is used.
- Copy of any lease/tenancy agreement(s).
- Details of the background and experience of the applicants.
*LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which banks offer to lend money to one another in the City of London.
Submit an enquiry for one of our commercial mortgage products.
