North London pub chain owner secures £1 million funding deal
A pub chain owner has turned to alternative funding to get an investment deal away for a pub in Enfield after high street banks showed little appetite for the deal.
Experienced licensed trade entrepreneur Phil Osborn was seeking a mortgage for a freehold addition to his thriving pub chain. Following an introduction by his accountant, Phil spoke to Shaun Hyland at Reach Commercial Finance for help in arranging the £1m loan to acquire the Three Wishes public house based in the popular suburb of Winchmore Hill and complete a full refurbishment at a cost of £200,000.
Phil commented: “We were extremely frustrated that lenders failed to give credit for the strong performance of our chain, even during the pandemic, and simply declined our request because we operate in the hospitality industry.”
Knowing that many lenders were super wary of the sector, Shaun immediately provided a shortlist of those that remained optimistic and worked with the management team to secure the required facility.
Shaun said: “The key factor in this was the strong performance of the chain, led by a very experienced management team with excellent understanding of their market and its challenges. As a result, once we had found a provider with the desire to lend into the sector, the proposal spoke for itself.”
Shaun continued: “A lender’s appetite for risk will inevitably be influenced by the impact of the pandemic and consequential restrictions to trade. It is therefore very important that SME business owners demonstrate the strength of their team supported by accurate and timely management information. This provides crucial reassurance to potential lenders, whatever the industry or sector.
“We have added value as an experienced broker at a time when it has never been more important, especially for the hospitality industry. It’s been a positive outcome for all concerned.”
Reach Commercial Finance is an independent financial brokerage of Leonard Curtis Business Solutions Group. It has a wide range of experience in helping limited companies and corporate entities secure funding.
This was posted in Bdaily's Members' News section by Sue Souter .
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