Stewart Hindley – Building Relationships
Since we’ve been raising finance for the Leisure, Hospitality and Care Sectors, we have developed long term relationships with key decision makers in all the leading Banks, Institutional and Specialist Lenders, all of whom have helped our clients fund and develop their businesses.
Consequently lenders have a full understanding of how we work and have confidence and trust in our judgement to deliver their credit team professionally collated and presented funding applications.
These relationships have many benefits, particularly with the speed with which an application is handled; typically we can offer you an in-principle decision subject to valuation within 72 hours from receipt of all supporting information.
Stewart Hindley – Understanding your business & financial needs
We place great emphasis on understanding your financing requirements and will request an initial meeting with you to discuss the financial merits of your proposed purchase, whether a guest house, small hotel or bed and breakfast. This ensures that we can provide timely access to the required level of finance required to complete the purchase.
After our, without obligation, consultation you will know your financial strengths and borrowing power, the supporting information you will need to provide to the lender, the indicative loan profile and terms and all the associated costs of purchase. It is likely that you will have a number of properties of interest, we are available to discuss the financial merits of each; the final decision of course is your own.
Stewart Hindley – In Principle Offer
Before you make an offer to purchase, we can secure an in-principle loan offer on your behalf from a number of lenders that will ensure that the proposed purchase meets with the Bank’s lending criteria.
This in-principle offer will be based on our “Desk Top Valuation” of the target business, undertaken by a recognised valuer from the preferred lenders panel of valuers, to ensure that the sale price is in line with market expectations together with the business’s trading accounts and your own personal history.
We will also work closely with the Sales Agent to assure them and the Vendor that you have secured in-principle finance to complete the purchase subject to valuation.
It is important to note that the Agent will recommend to the Vendor an offer, which might not necessarily be the highest offer, from a purchaser whom they believe has the finance in place to complete the transaction in good time.
When you have made an offer that is then accepted, we will compile a complete financial overview to the preferred lender, to include your business plan, together with the trading accounts of the business which will be positioned and profiled to meet with the lenders credit criteria.
Stewart Hindley – Instruction to Value
As soon as we have received the lenders approval, which will be subject to valuation, we will then brief and instruct a valuer from the lenders panel.
This instruction is a crucial element in the lending/credit process, as the lender will base their security and debt service risk on the valuation and in this respect, it must be totally representative of the business and its trade.
A valuer who is not instructed by us and isn’t provided with the relevant financial information and one that is not fully conversant in the leisure, hospitality and care sectors, might not realise and represent the business’s true potential in the valuation report to the lender.
Expertise is everything in areas such as this; in the same way that you wouldn’t hire a zoo keeper to sell your house, using experts to raise the funds for your new bed and breakfast or other hospitality business is essential if you want the best results.
Stewart Hindley – Formal Sanction
Once the valuation report is received and approved by the lender’s credit committee, we will then arrange a meeting with the lender to discuss your plans for the business, your background, and they in turn will fully explain the terms they propose to offer.
Following this meeting, the formal documentation will be sent to us for our approval and then submitted to you.