Stewart Hindley & Partners are business finance brokers who work with dynamic businesses who are looking at ways to fund growth. Business re-financing is one option. Business re-financing or commercial re-financing is a common stage of growth for mid-market businesses and larger companies.
Our re-finance expert will help steer you through the business re-financing options, ensuring that we understand the exposure and level of risk and reward before we make commercial re-financing proposals.
We will get to understand how your business works, establish the benefits of expansion or re-investment and partner you with funding sources for lending that is positioned to work to your advantage in today’s challenging environment. Because we are part of an established firm of Chartered and Certified Accountants, we have the knowledge, capability and contacts to arrange business re-financing deals on almost any scale, negotiating terms to exactly fit your needs at any one time.
- Re-financing can be undertaken to reduce interest costs
- Re-financing can alter the monthly payments owed on a loan either by changing the loan’s interest rate or by altering the term of the loan.
- Re-financing is used in most cases to improve overall cash flow.
- Re-financing can be used to reduce the risk associated with an existing loan. i.e. by re-financing from a variable rate mortgage to a fixed rate mortgage you can ensure a steady interest rate over time.
Where to Start?
Preparing for debt re-financing in the hospitality and leisure industry.
Before looking at your business debt re-financing options you need to consider whether it is really necessary in the first place, given the relationship you have with your lender. If you do decide on debt re-financing, as hospitality finance specialists, we can help.
Before starting to look at any form of financial restructuring you will need to consider the following:
- Can I produce the last three years Statutory Accounts and Management information to date?
- Does my trading profit (EBITDA) service the debt under the lender’s debt stress criteria?
- Is the cash flow available in the business sufficient to service the debt?
- What term of debt can I secure based on the lender’s debt service stress test?
- How do I maintain my LTV covenant if my trade declines?
- What other security may be required?
- How can I ensure that the business is sustainable to service debt in these uncertain times?
- Which debt structure is the right one for my personal and business circumstances?
- Should I consider a fixed or standard variable rate loan?
- Will a fixed rate provide certainty to the lender, as interest rates are currently at an all time low?
- How much will re-financing cost?
Seeking specialist hospitality finance advice
The lender will want to ensure that all of the above points are covered before a decision to lend is taken. With so many factors to consider, the support that a firm of qualified, professional advisors can give you will be invaluable. At Stewart Hindley & Partners we specialise in the hospitality and leisure sector, so can work to secure the debt on your behalf at the best rates possible for your individual circumstances.