Taking out a mortgage to open a B&B is a good way to finance your business. Funds can be obtained based on the value of your property and its assets, as well as the strength of your business plan. You can then make the repayments with the monthly revenue you earn, allowing you to repay the debts over time. Many B&B mortgages even allow you to reduce your payments in the off-season to account for the potential for a fall in occupancy.
Having a mortgage also offers another advantage for bed and breakfast owners. Over time you’ll have the chance to remortgage so you can get a better rate and potentially reduce the amount you have to repay every month. The tactic can also unlock the additional funds you need to do renovations or other expenditure.
When you search for a mortgage or want to remortgage, it is important to find the right specialist to work with. This will give you better access to the market and the kind of support you need to make the right decisions. Both options are big commitments so it is essential you look at the terms and read through all of the documentation to make sure you are clear on what will be required of you.
Another significant advantage of working with a specialist is they will be able to advise you about finance as the needs of your business change. Initially you will likely need to take on debt to get started. Afterwards it will be a matter of reducing this and ensuring you make a profit. As you pay off the debts you may start looking for new opportunities. This is wise but you may need to be careful with burdening your business with new debt all over again. It is essential to look to the long term.
At Stewart Hindley & Partners LLP we are well positioned to help people to secure the bed & breakfast, hotel, guest house or marine finance they need. We are brokers but offer much more than simply putting you in touch with the right lenders. It is our aim to help you understand your needs and shape your loan proposals to reflect the needs of your business.