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the level of security available and can even look at the level of experience that the applicant has in the leisure and hospitality sector.
So whilst it is important to ensure that the overall application is as strong as possible, it is also necessary to ensure that any weaknesses can be mitigated against, and solutions put to the lenders before the application is rejected. This can be daunting for any potential applicant, particularly those who are new to the commercial finance scene. It can result in people who are actually able to secure the finance they need being declined by their bank.
Using a commercial finance broker, such as ASC Finance for Business, is one way to overcome these various challenges. An experienced broker has the know- how to present a case to lenders in order to get the right results for finance, and should understand which lenders have the appetite for that particular type of commercial finance.
For example, we were recently approached by a couple who wished to purchase a B&B in Devon. They had found the property they were looking for, but faced two hurdles. Firstly, the business had been closed for three years, so did not have an up to date record of accounts. Secondly, they had never run a B&B before, so lacked direct experience. After many discussions with them, their local ASC director was able to put together an application which was able to both highlight, and solve these potential pitfalls. By looking at the clients other experience and support which they were able to rely on, and by supplementing the application with an up to date business
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plan and projections, they were eventually able to find a lender who was able to help the complete the £400,000 purchase.
Now these solutions are not universal - when it comes to commercial finance, each case is judged on its own merits. So, whilst having a business plan was helpful for the above clients, it is not always a requirement – many other cases we have assisted with have not required a business plan at all. The overall application needs to be presented to the lenders in a way which really sells the proposal to them, and highlights why they should be providing the finance.
So even if the impression you get from the media and from high street banks is that there is no finance available to small business owners - having the right support, and access to the right lenders, can result in you getting the right finance.
www.asc.co.uk
ASC Finance for Business are commercial finance brokers with over 40 years’ experience in raising finance for small business owners. We have been working with the Bed and Breakfast Association for many years, in order to assist their members in raising finance for their businesses. They offer a no obligation discussion with an experienced and local director, so if you are looking for finance for your B&B, then contact your local director at
http://www.asc.co.uk/YourLocalOffice and quote the B&B Association.
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