An expanding restaurant group in Yorkshire asked Genie Lending to structure commercial mortgage finance to enable the main trading company to add to its small portfolio of restaurants.
The core business was profitable and cash positive, but, like many businesses in the catering sector, the accounts were not terribly strong. Gearing the secured business loan to 70% with the benefit of a cash deposit, supported by good bank statements and a strong bricks and mortar valuation, Genie Lending’s Business Finance Manager was able to arrange a £110,000 commercial mortgage at 4.5% over LIBOR with a very enthusiastic secondary bank.
The loan was put together on an interest only mortgage with the benefit of a 10% annual capital overpayment facility and no redemption penalties after the first three years. The client could achieve their objective of being free of mortgage debt within the planned 6 year time-frame.
We are already engaged with the client working on the funding proposal for their next restaurant loan.