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| Bed & Breakfast News | March - April 2016
Finance for B&Bs
by Joshua Ejdelbaum (right) of ASC Finance for Business
Running a Bed and Breakfast is a dream of many people in the UK. In fact, I can recall the results of a survey a few years ago which said that given the choice, 62% of people in the United Kingdom would rather own their own B&B than go into outer space and be an astronaut! So despite the lure of joining the select few individuals in going into space, the attraction of running your own business in the UK is greater.
But it can be increasingly difficult to make that dream become a reality, and one of the key reasons behind that is having access to finance. Without finance, buying the bed and breakfast in the first place cannot happen.
From what you read in the press about what banks are willing to provide to small business owners, you’d be forgiven for thinking that there was little to no finance available, and that banks were almost closed shops. The reality however, is that there is in fact finance available for small business owners. There are two key tricks to raising finance: knowing where to look, and how to clear the various hurdles and obstacles in your way.
Firstly, there are numerous different banks in the marketplace, but each lender has different criteria and varying appetites for each sector, and these appetites are constantly changing over time. Knowing which lenders are lending in which circumstances is half the battle in arranging finance.
The second issue is understanding what lenders are really looking for. When considering an application for finance, there are several different factors that they take into consideration. For example they look at the turnover of the business,
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