Commercial Development Loans: The facts
If your business operates from its own premises, you’ll want to make sure that the property serves your needs. After all, it’s where you welcome your customers and produce your goods and/or services. However, as your business develops you may find that your current facilities are no longer sufficient to enable you to keep up with customer demand. Of course, you could try moving elsewhere, but that can be expensive and you may already be in a prime location. Instead, a more cost-effective solution might be to redevelop your existing premises with the help of a Commercial Development Loan. Commercial Development Loan come in a variety of forms and are designed to provide the funds so that you can adjust and/or expand your existing premises with total confidence. Why should I apply for a Commercial Development Loan? Although redeveloping your existing premises may cost less than deciding to move your whole business to another location, making improvements to your current commercial trading address can still prove an expensive endeavour, especially when you factor in aspects such as planning applications, architect fees, surveyor fees, contractor salaries, cost of building materials and the amount of disruption to your business. However, rather than relying solely on your own savings, you could spread out the cost of the project over a short or long-term agreement by applying for a Commercial Development Loan. Therefore, a Commercial Development Loan is a means of easing the strain upon your business’ finances whilst enabling you to make the changes that are required. What can a Commercial Development Loan be used for? What makes Commercial Development Loans such a useful tool for any business owner looking to make improvements to their existing premises is that they can be used to support any type of property development project. So whether you’re looking to improve customer-facing areas, build extensions, increase the size of your stockroom, reposition weight-bearing walls or ensure that the property complies with modern building control regulations, a Commercial Development Loan could provide you with the funds you require. Plus, if you’re an experienced property developer looking to construct property such as new homes, a Commercial Development Loan could also assist here as well. So, all you need to do now is source an agreement that’s suitable for your business’ needs. Thinking about making an improvement to your business premises? Or are you looking to devleop land in your possession? Apply for a Commercial Property Loan or learn more about how your business could benefit What types of Commercial Development Loan could I apply for? If you don’t want to move to another location or are looking to build property, a Commercial Development Loan could offer you the funds necessary to succeed. However, there are two types of Commercial Development Loans available to choose from, which are: Development Mortgages and Development Bridges. So in order to make an informed decision and acquire the funds you need, understanding the differences between these two types of loans is crucial. Development Mortgage If the project is in relation to a property that is considered habitable but needs extensive modernisation, or the construction of an entirely new property, you may want to apply for a Development Mortgage. A Development Mortgage is a long-term agreement that can last up to 20 years and is typically secured against the property itself and/or another property in your portfolio. Although such agreements typically offer up to 60% LTV, 100% LTV is achievable, but you may need to provide additional security and know that the quality of the land/property will also be brought into question. Nevertheless, though there’s no limit to how much you can borrow, the amount of funding you may receive will take into account the project’s Gross Development Value (GDV) when complete. Plus, you’ll need to be aware that you need to place some of your own equity into the agreement as well, which could be up to 40%. In addition, you’ll also need to make Fixed Monthly Repayments throughout the agreement. The amount of interest you’re charged may vary depending on whether you’re using a Fixed or Variable Rate Mortgage. Development Bridge On the other hand, if you’re looking to carry out a light redevelopment, undertake a renovation or fund a major conversion project, you may want to take a look at what a Development Bridge has to offer. A Development Bridge is a short-term agreement that can last between 1-12 months and could be arranged to support up to 100% of the project’s total costs. Typically secured against either the property in question or another in your portfolio, Development Bridges are high-interest agreements that can be established as a Closed Bridge or an Open Bridge. Closed Bridge: Using a Closed Bridge means that you’re expected to fully repay the agreement by a set date. Open Bridge: With an Open Bridge, you aren’t tied to a specific date but you are, however, expected to have fully repaid the product within a prescribed term (e.g. 12 months) Meanwhile, you also need to consider how you intend to repay and resolve the interest that’s incurred until the agreement has been resolved. To do, you have 3 options available: Pay Monthly, Rolled-Up Interest or Retained Interest. Monthly Interest Payments: This option requires you to make interest payments at the end of each month until the agreement has been resolved. Rolled-Up Interest: Combines the Principal (capital borrowed) with the total amount of interest that’s been incurred, which is repaid in full via a single repayment when the agreement matures. Retained Interest: This option enables you to borrow the interest you’ll incur for an agreed number of months. This is kept by the lender and is used to provide your business with a safety net whilst you make monthly interest payments. When the agreement matures, the lender may reimburse a portion of the retained interest, providing that it’s not been used up and/or you’ve managed to repay the agreement early. Thinking of applying for a Commercial Development Loan? Commercial property in the UK is a valuable commodity for any business, providing a wide range of benefits. That’s why, if you manage your own premises or possess valuable land, you are likely to want to make full use of it. The trouble, however, is often in the cost. But if you’re looking for a cost-effective way of achieving your property development goals you may want to consider applying for a Commercial Development Loan. All you need to do next is source an agreement that’s appropriate for your goals, which is why speaking with qualified business finance professionals could help. At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also use our expertise to guide you through the application process. So if you’re looking make improvements to your premises or build on land in your possession, apply for a Commercial Development Loan today or find out more with Rangewell.
Ways in which you can use Opticians Finance
From providing a high standard of care to maintaining day-to-day operations, there’s nothing simple about running an opticians in your local area. Nevertheless, many people in the UK require some form of eye care, especially as they get older. But in order to seize upon every opportunity that arises and stay ahead of local competitors, ensuring that you’ve got access to the funds you need to support innovation, advanced technologies and everyday expenses are essential. That’s why more and more opticians looking to grow their business are choosing to apply for Opticians Finance. Providing access to a wide range of funding solutions, Opticians Finance can be used for any number of purposes. But to offer you some ideas on how your practice could benefit, these are just some of the most common uses. Acquiring Optometrist Equipment In order to provide the highest standards of eye care to each one of your patients, ensuring that you have access to the latest optometrist equipment, technology, diagnostic tools and IT systems is vital. This can includes Auto Refractors, Volk lenses, Projectors, Field Screeners, Keratometers, Retinal Imaging Equipment, Retinoscopes and frame heaters to furniture and storage units. Naturally, providing a comprehensive level of care to your patients can be very difficult and expensive to achieve, especially for smaller, independent practices. However, with the support of Opticians Finance, you can now spread out the overall cost of equipment, or even borrow it for a limited period time, by applying for products such as Hire Purchase or leasing. If you already own optometrist equipment outright, you can also release the equity that they contain and support further purchases with Asset Refinance. Looking to invest in the future of your opticians? Got projects you want to get started on, but lack the necessary funds to do so? Apply for Opticians Finance or learn more about how your practice could benefit Supporting day-to-day operating expenses Each day that your business opens its doors and provides treatment, you will run up a long list of operating costs, ranging from business tax, utility bills, insurance, staff wages, supplies, repairs and rent to premises taxes. For any opticians, regardless of size, staying on top of these costs can prove an arduous endeavour. But there are a number of ways in which you can succeed. Opticians Finance also grants you access to solutions such as Merchant Cash Advance, Invoice, Overdraft Replacement and Inventory Finance. Terefore, managing your financial obligations needn’t be a strain when you have access to the right support and external funding. Acquiring or moving premises To be able to offer your patients the level of care and services they demand, you’re going to need premises. However, with the price of property constantly rising, acquiring premises in a location close to your customers may prove challenging. But there are options available to you. As well as renting, you could purchase property using a Commercial Mortgage. On the other hand, if you already own property but want to move closer to your patients, then perhaps applying for a Bridging Loan might be an option? Whatever your premises requirements, with the help and support of Opticians Finance, there’s no reason why you can’t acquire a solution for your business. Expansions and renovations In addition to equipment and location, you also need to think about ways in which your existing property could be improved and made more attractive to your customers. Does the decor in your customer-facing areas need modernising? Are your facilities big enough for your current (or desired) customer base or do they need extending? Or perhaps you need to ensure that your practice complies with the latest rules and regulations in order to continue operating? By choosing to support your practice with Opticians Finance, you could apply for products such as Secured and Unsecured business loans, a Redevelopment Bridge, Redevelopment Mortgages, Mezzanine Loans, Asset Refinance or straightforward Overdraft Facilities. As such, you’ll gain both the confidence and the support to carry out any renovation or redevelopment project, ensuring that your premises meet the high standards your patients expect. Buying out a competitor or partner If you’ve established your opticians with the support of business partners or 3rd party investors, you may have had to give away shares (equity) in the business. However, if your partner or an investor chooses to go their own way, you are likely to want to buy back their share. But if you lack the necessary funds to do so, this can cause any number of issues, which is where applying for Opticians Finance could help. Plus, with the support that's on offer, you can even raise funds to buy out a competing optician. By choosing to explore what Opticians Finance could do for your practice, you could benefit from being able to apply for a wide range of funding products, meaning all you need to do now is find an agreement that most closely matches your needs. Thinking about applying for Opticians Finance? In order to run a successful opticians practice, making sure that you have access to the funds you need is vital. It’s a responsibility you simply can’t afford to overlook. Whether you’re looking to support growth, innovation or any other goal, it’s something that can really affect your chances of success. Yet despite the necessity, raising funds can be a daunting challenge, if you don’t know how. No matter what you’re hoping to achieve, applying for Opticians Finance could give you access to a wide range of business finance solutions. So if you’re looking at a more convenient location, acquire additional supplies or even gain access to a cash injection, apply for Opticians Finance today or find out more with Rangewell.
Do you know if your clients are ready to apply for Business Finance?
Running a successful business isn’t easy, which is why having access to personalised advice is so crucial. As such, this is where you, as their accountant, can get involved. Whether they’re looking to ensure growth, maintain day-to-day operations or support any other key projects, your clients are entrusting you to help them move forward. That’s why you need to consider expanding your services and provide guidance on what business finance solutions are available. However, as well as identifying what products might be suitable, you also need to be aware about when business finance might be appropriate. To help you do that, here are 3 key signs you need to be aware of. What are your client’s goals? In order to tell whether any of your clients could benefit from applying for business finance, you need to have a detailed discussion about what their short and long-term goals are. So if they’re looking for help growing their business, for example, you need to understand what exactly this involves. Do they require new equipment? Could they benefit from larger premises? Or do they require assistance preparing for a vital contract? Only by having an in-depth understanding of these goals will you and your client be able to draw up a detailed roadmap that’ll outline how the concerned goal(s) will be achieved. This will also work in your client's favour, should they choose to apply for Business Finance since many lenders will want to know how their funds will be spent before lending. Are your client’s looking to raise funds to support growth and maintain day-to-day operation? Need help sourcing an appropriate agreement for their individual needs? Learn more about how your clients could benefit Do they have a reliable cash flow? Another way of telling whether your clients could benefit from applying for business finance is by assessing the reliability of their cash flow. If their cash flow is stable it should indicate they’ve got a reliable customer base and are able to keep up with their operating costs. As such, this should give them a solid foundation on which to grow and scale their business, especially if they’re in profit. However, if they’re experiencing a cashflow shortfall or are in the middle of an emergency that’s adversely affecting cashflow, applying for business finance could still be a viable option. This is because many of the business finance solutions on offer could allow your clients to raise additional capital on the back of their business’ past income, unpaid invoices, card-based sales (credit and debit card), intangible assets (trademarks, copyrights, patents, etc) or unencumbered assets (equipment, machinery, vehicles or property). Have they checked their credit score? Finally, you and your client need to review both their personal and business credit profile. This can be achieved by requesting a report from one of the UK’s leading credit agencies: Equifax, Experian or TransUnion (formerly Callcredit). Together, you need to inspect the information that’s outlined, ensuring that it’s correct and whether there are any areas your client needs to address. When carrying out credit checks, you need to be aware that lenders will look at whether your client has past or recent CCJs, Accelerated Payment Notices, existing debt (e.g. credit card debt) and their history of resolving debt on time. However, although many business finance solutions do take your client’s credit rating in the account, there are plenty of other product available that may provide funds based on other factors, such as your client’s cashflow. Therefore, business finance is available for a variety of financial situations. Yet, the key to success in this area depends on your ability to guide and source a suitable finance solution that’s appropriate for their individual circumstances. Do your clients need help sourcing a suitable business finance solution? Exploring the UK lending landscape can leave your clients feeling lost and confused. As well as considering what their bank may have to offer, the Alternative Finance industry is also helping to ensure more businesses than ever before have access to the funds they need to succeed. But with so many different products on offer, the challenge you and your clients need to overcome is sourcing the most appropriate agreement from a lender they can trust. Although this can seem like quite a task to fulfill, you don’t need to do it alone. Help is at hand. At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer your clients an overview of more than 23,000 business finance products. Our services are free to use for you and your client and we’ll also guide them through the application process. So if your clients are looking to raise capital for their business, find out more how you can achieve the support your clients want from you with Rangewell.
Commercial Bridging Loans
Commercial property is a valuable asset for many business owners, enabling you to produce your goods and services in order to generate an income. The trouble is that the UK property market can be very expensive, but if you’re an SME owner looking to purchase a permanent trading address or expand your portfolio, climbing onto the property ladder needn't feel like an impossible goal. One of the products that you could apply for is a Commercial Bridging Loan. But the question is, is it a suitable solution for your business? What can Commercial Bridging Loans be used for? What makes Commercial Bridging Loans so useful is that they’re subject to little or no usage restrictions. Yet, because of the way in which they function, Commercial Bridging Loans are often used in property in order to support purchases and redevelopment projects. So if you’re looking to gain access to your first permanent trading address, expand your portfolio or carry out renovation work, a Commercial Bridging Loan could be what you need to achieve your goals. But as always, in order to make an informed decision, you need to fully appreciate how the product works. Thinking about purchasing commercial property? Need access to capital at short notice? Apply for a Commercial Bridging Loan and learn more about how your business could benefit How do I apply for a Commercial Bridging Loan? If you’re considering a Commercial Bridging Loan for your business, the first thing is you need to show to lenders that you have an exit strategy. Bridging Loans are short-term solutions that can last up to 12 months, so lenders want to know how you’re going to raise the necessary capital to repay the agreement by the time it matures. For example, are you selling property within your portfolio or refinancing a valuable asset in your possession? Lenders will also request permission to review both your personal and business credit profiles, allowing them to gain an in-depth understanding of your financial situation. As such, lenders will incorporate into their checks whether you have past or recent CCJs, accelerated payment notices (APNs), outstanding debts (e.g. credit card debt) and a history of resolving debt on time. If there are any issues, this will affect your credit score, which lenders will use to calculate the interest rate on the agreement. Therefore, the weaker your score the more interest you’ll need to pay. In addition, Commercial Bridging Loans are secured products that typically use the property as collateral - this can be the property that your purchasing, redeveloping or another unencumbered property in your portfolio. Although this boosts lender confidence, this also puts the property in question at risk of repossession should your business default on the agreement. How are Commercial Bridging Loans repaid? What makes Commercial Bridging Loans so different from other business finance solutions is the way in which the Principal (money borrowed) and the Interest incurred on the agreement is handled. Firstly, you need to decide how you’re going to resolve the principal and when - you have 2 options, either to apply for a Closed Bridge or an Open Bridge. Open Bridge: An Open Bridge allows you to repay the loan as soon as you possess the necessary capital, usually within an agreed term that could extend up to 12 months. That said, lenders may specify a cut-off period expressing how long they’re prepared to wait for full repayment of the product. This form of Bridging Loan could prove useful when working with a business project that has no set completion date. Closed Bridge: A Closed Bridge, however, requires you to fully repay the loan by a specific date but still within a 12 month period, or term. This can be useful if you’re a selling property and have agreed on a completion date, for example. Next, you’ll have to decide on how you’re going to resolve the interest. Before applying, it’s worth noting that Bridging Loans typically carry a high rate of interest which can range from 0.7 - 1.5% per month, but can be higher still depending on individual circumstances and the complexity of the request. Yet, in order to help you resolve the interest, you have 3 choices: Monthly Interest Payments: Using this option, you will be required to make interest payments at the end of each month until the principal on the loan has been fully repaid. Rolled-Up Interest: Here, the total amount of accumulated interest is combined with the total amount of money that you have borrowed. When you’re due to settle the loan, dpeending on which product you’ve chosen, both interest and the principal is repaid in a single, final payment. Note that this will increase the size of the final payment, so you need to be certain that you can afford this option. Retained Interest: With this option you are, in fact, borrowing the interest that would be accumulated for an agreed number of months on top of the money that you are already requesting. The amount of interest that you’re borrowing is then retained by the lender but is designed to offer you a safety net as you make monthly interest payments until the loan’s principal has been fully repaid. If you haven’t used up all of the interest that was retained, or you’ve managed to fully repay the loan early, lenders may reimburse a portion of the retained interest that wasn’t used. Thinking about applying for a Commercial Bridging Loan? Although property ownership presents many benefits to the UK business community, many SMEs are often discouraged by the significant cost outlay that’s required. But rather than abandoning your goals or using your own funds, there is another way. Bridging Loans offer you a way of borrowing large lump sums at short notice, with some agreements able to be established in as little as 48 hours (depending on the complexity of the request). However, with so many different lenders to choose from, how can you be sure being offered a cost-effective solution from a lender you can trust? At Rangewell, we’re an Access to Finance specialist who have mapped over 400 different lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the entire application process. We’re with you every step of the way. So if you’re looking to invest in your business’ future, apply for Property Finance today or find out more with Rangewell.
Setting up a glamping business: £50,000 secured on land
Glamping has moved from a trend to a significant industry and business model. It gives vacationers the opportunity to enjoy all the relaxed informality of camping with the added extras and comfort of a 5-star hotel. It also allows the owner to set up a hospitality business with great earning potential. Glamping has, therefore, become a growing business in the UK - particularly with farmers looking for diversification and new sources of income. We recently helped a small farmer set up a glamping business, with £50,000 of funding to buy and equip yurts. Many farmers can be well placed to take advantage of the returns a successful glamping business can offer. A good site location with a view, woodland, river or lake in a popular tourist area might be ideal for a camping business. Easy access, secure parking and facilities like a social area or even clubhouse could be ideal. We were recently approached by a small farmer whose Somerset farm was in need of new income streams, and who saw the possibilities of Glamping. The challenge He had looked at the costs of bringing in water for a shower block, electricity and a wifi link, and had contacted a booking service which could provide an online booking facility. He had also spoken to the local authority and discussed a licence, which is required from your local authority if your site is to be used for more than 42 consecutive days or more than 60 days in a year. It is a criminal offence to operate a campsite or caravan site without a licence. The council had no objections to the new venture and accepted his proposal based on a short business plan, which his consultant helped him prepare, which, as well as providing income figures, covered concerns such as drainage and the impact on wildlife. The business would be seasonal - but with his farm being in a good location, he felt it could provide the extra income he needed. He talked to an expert consultant who explained the costs and the challenges he was likely to face. “I looked at several solutions. Treehouses are popular, but planning might be a problem, and the insurance costs are high. Huts could mean year round business, but the costs of a good looking hut that does not look like a shed were very high. I decided on yurts - and the traditional kind, with a curved wooden frame, seemed to have the kind of appeal I was looking for.” He had trees to think about - and chose green canvas rather than white for the yurts to avoid looking grubby and run down after just a couple of seasons of leaf mould and bird droppings. “I had space for about eight yurts for letting out, and a larger version to use as a social area, with games and activities for guests to use. The costs varied with suppliers, but the quality I needed would mean spending around £40,000, and then I would need to equip each one with suitable furnishings and brought in services. As for fitting them out, basic kit would not give the right feel. Something quirky but comfortable would be vital.” The solution His total costs would be in the region of £50,000, and he needed to move quickly to be ready for the summer season. He already knew that his main asset was his land, and that many lenders are wary of using land as security. He anticipated that raising the cash might be difficult - especially as he had found problems with arranging lending in the past. However, we know lenders who are able to take a positive approach towards land and are able to offer funding of up to 50% of the value of land already owned. The value of the farm’s land holding was more than enough to provide security for the £50,000 required. We were able to arrange funding at 6% over ten years, which the farmer was more than confident would be easily returned by his new venture. Are you considering the possibilities of glamping? At Rangewell, we help landowners become holiday business owners with innovative answers to their funding needs. Call our holiday property funding experts to see what they can do for you.
Heping buy a £1,000,000 campsite: Buying a high cost business
Britain has 1.8m caravans and owners are constantly looking for campsites. It also has around 3 million enthusiastic anglers. A business which could offer caravan camping with good coarse fishing, plus a range of other activities to cater for all the family, could be highly profitable - especially with an improving climate and a falling pound that makes overseas travel much less attractive. But there is much more to a successful business than a field with a lake and standpipe or two. Today's campers want hardstanding with hookups, clean lavatories and showers. They want Wifi, a shop, laundry and even a licensed clubhouse. We recently helped a couple buy an established touring site in Lincolnshire that offered all those qualities. Looking to fund a leisure business or campsite or caravan park? Do you see the potential but those lenders you've approached don't? See how we're different at Rangewell The potential for a growing business Our clients lived in Lincoln and were a husband and wife team whose family had left home and were looking for a new and more relaxed lifestyle - although neither were looking for early retirement. “We were really looking to improve our quality of life, but we needed to arrange an income as well as a home.” They realised that they might have found just what they were looking for a few miles from their home. The business was a licensed caravan site with 27 acres that included some woodland - plus five acres of lakes. “It was the trees that attracted us at first. Forested areas are something of a rarity in Lincolnshire. But not only was there woodland, there were the magnificent lakes. I was no fisherman, but I could see that they would appeal to anglers of all ages. Even a bad day’s fishing can be a good day in the right environment.” There are around three million anglers in the UK - and many are looking to combine a holiday with some serious fishing. It meant the site had multiple income streams: Day fishing - £10 a day per rod is a standard charge, and a typical weekend could see as many as 70 anglers coming onto the site. The angling shop - lures, kit and clothing are all steady sellers, and opening for just a few hours a day was bringing £20,000 a year in sales. A cafe - breakfast, lunches, snacks and, of course, hot drinks were generating another £20,000, and there was scope for building the business to provide evening meals for campers - and possibly alcohol sales. Camping - the site was large, and the attractive location made it something of a magnet for touring caravans. A revenue of £120,000 a year was already being generated, and there was spare capacity that could be opened up. There were good facilities, including a club house, covered childrens’ play area and a games barn. There would also be scope for new activities such as a zipwire and quad bikes. “There was a very nice house on site too - it had once been a farmhouse, but it had been updated to provide a very comfortable modern home. It was actually bigger than the house we were living in.” How we helped The potential was obvious - but the price being asked for the business reflected the scope the business offered. The price of £1,000,0000 reflected the existing business revenues, and the fact that the new owners would be buying a home as well as the business. “It was a lot for this part of the world, but we would be getting a lot in return.” The couple could raise around £500,000 from the sale of their home and some savings, and called us at Rangewell to help find the most cost-effective way to raise the rest of the money required. We explained that costs might be high, because neither of them had experience of running a business - which lenders will always see as a potential risk, and price any loan accordingly. However, we found a commercial property specialist lender who could provide £500,000 at 9.9 % over 15 years. Armed with a firm offer, the couple negotiated with the vendor, and secured the business for £920,000. At Rangewell, we help holiday business owners - find answers to their funding needs. Call our holiday property funding experts to see what they can do for you.
£520,000 loan to buy a fishing site: Buying a business that was also a home
There are around three million anglers in the UK - and many are looking to combine a holiday with some serious fishing. There is more to a good fishing lake than digging a hole and stocking it. The location is crucial to success, and everything from water quality to parking needs to be carefully prepared for. Day fishing can provide an income, but the real opportunities may lie with providing camping accommodation, and all the extra opportunities that may present for revenue generation. There are not many properties with commercial fishing lakes and camping areas - but when they come up they can provide the basis of a rewarding enterprise. We recently provided funding which would help a couple who are both keen anglers turn their hobby into a business. Our clients were a husband and wife team who were lifetime anglers - both had won competitions. They knew the challenges involved in running a fishing business. “Setting up a fishing enterprise sounds easy: dig a hole, fill it with water and plop in some fish. But there’s a bit more to it than that, if you don’t want to end up with a hole full of muddy water that clearly has no appeal to fish and even less for fishermen.” A natural lake will be best or, failing that, a quarry or similar, which has been the home to fish and attracted anglers, may be a better approach than bringing in the diggers. An established lake will mean better fishing and a more attractive environment for anglers - even a bad day’s fishing can be enjoyable in the right environment. The stock in the lake is important - as are the facilities on offer. “Trout are not the only fish that pull in the anglers. Trout fishing is being overtaken by carp.” Looking to start a leisure business or want to buy an existing business? Find out your options or apply for funding today The challenge When our clients discovered an established fishing site for sale in Herefordshire that also offered scope for camping, they were immediately keen on what they saw. The site had nearly 20 acres, with good road access, a café, tackle shop and proper toilets - which the couple realised was important for female anglers. Many women won’t go to the smaller fishing lakes because of the lack of facilities. The site was also licensed for camping, which provided plenty of opportunity for development - and, above all, it was profitable. The core business was a day ticket costing £10 for one rod - and we saw that on a bank holiday weekend the site was bringing in a hundred or more anglers. It meant an annual turnover of around £100,000, while the tackle shop and café could take another £25,000 to £30,000 a year. The potential of the camping business had hardly been explored, but the couple believed that they might take another £30,000 a year if they marketed the business properly. There was also a two-bedroom lodge house and several outbuildings which could provide the basis for conversion into a club house, covered childrens’ play area and a bar. It was ideal - but the rarity of such a business opportunity meant that the price being asked for the business was high. The price of the site as a going concern was £750,000 - reflecting the existing business revenues, and the property on site. But buying a home as well as a business can often mean complication as well as extra costs. They could raise around £300,000 by selling their existing home, but as both of our clients would be giving up work, they realised that they needed to keep some cash as working capital, as well as to invest in improving facilities for the business. They called us at Rangewell to help find the most cost-effective way to fund their acquisition. The solution We explained that costs would be high, because neither of them had experience of running a business of this kind - which lenders will see as a risk. However, we saw a solution. By providing an interest-only loan for two years, we could keep costs manageable for the initial period while they established the business, and started to develop its profitability. We found a lender who could provide £520,000 at 0.85% per month for two years. At the end of that period, we would seek refinance - armed with two years’ accounts, which should provide evidence of the soundness of the business, and allowing them to arrange a loan at a much lower cost from a high street bank - which may be the most cost-effective source of funding. At Rangewell, we help holiday business owners find answers to their funding needs. Call our Holiday Property Funding Experts to see what they can do for you.
Commercial Mortgages: Advantages and Disadvantages
Whether you're considering purchasing property or real estate for your business, one way of overcoming this obstacle is by applying for a Commercial Mortgage. Commercial Mortgages are classed as a secured, long-term form of lending, and can be a great way of raising and borrowing capital in large amounts for a variety of property-reated purposes. Yet in order to make an informed decision and discern whether your business stands to benefit, understanding every aspect of this product is essential. As such, here are the advantages and disadvantages of Commercial Mortgages you need to know about. Advantages One of the biggest advantages of using a Commercial Mortgage is that it's a long-term finance agreement which enables you to spread out large expenses over a period of up to 20 years, sparing you the need to remove large quantities of cash from your savings. Plus, although funding typically starts from £50,000, the amount of capital you could borrow is based upon the purpose behind the agreement such as a property purchase, premises refurbishment or a partner buyout. As such, there’s a limit to how much you could borrow other than how much much the lender is willing or able to provide. In addition, because Mthe product is usually secured against either the property you’re purchasing or one already in your possession, it encourages lenders to offer you a favourable interest rate (depending on your current financial situation). Plus, it’s also worth noting that if you possess the necessary capital, you can choose to pay off the mortgage product early, but there will often be a fee to do this (redemption penalty). Therefore, choosing to explore the advantages of using a Commercial Mortgage could be a great way of supporting and spreading out large expenses, allowing you to focus on other aspects of your business in the meantime. Need help purchasing property or buying out a partner? Looking to borrow a large lump sum? Apply for a Commercial Mortgage and learn more about how your business could benefit Disadvantages However, although it can be prove to be a very useful tool for your business, using a Commercial Mortgage also has its disadvantages as well. Firstly, when applying for a Commercial Mortgage, you’re required to place a portion of your own equity in the agreement. So depending on the purpose, this starts from 20% of either the total purchase price or the full cost of the refurbishment. However, if you’re able to offer up to 40%, it can significantly reduce the amount of capital your business needs to borrow and may earn you a more favourable interest rate too. Therefore, providing equity could, in fact, be seen as being both an advantage and a disadvantage, depending on your perspective. In addition, Commercial Mortgages use a Fixed Monthly Repayment Scheme that requires you to pay an agreed amount of capital back to the lender every month. Although this could enable you to stay in control of your budget, it may become an issue if you’re unable to keep up with the repayments at any point. Should this occur, the asset that’s being used as collateral could be at risk of repossessed by the lender and, if this was to happen, you would also lose all the capital you’ve already paid into the agreement. Plus, it’s also worth noting that your monthly repayment can vary depending on whether you’ve chosen to use a Fixed Rate or Variable Rate Mortgage. So whilst using a Fixed Rate product will protect you in the event of a market interest rates rise, you may lose out if they decrease. But on the other hand, Variable Rates could enable you to save if market interest rates drop, yet it may cause you to pay more should they rise instead. Need help sourcing a suitable Commercial Mortgage for your business? If you’re looking to raise money in order to support your goals, choosing a suitable finance solution can be quite an intimidating process. But if your business is in need of a lump sum in order to support a large expense, applying for a Commercial Mortgage could be the way forward. However, with the Alternative Finance Industry continuing to grow and introduce a new generation of lenders, sourcing a suitable mortgage agreement that also offers you a competitiverate isn’t as simple as it may sound. But rather than waste precious time and risk paying out more than you have to in the long run, speaking with a qualified business finance professional could prove invaluable. At Rangewell, we’re an Access to Finance specialist and have mapped over 400 lenders to offer you a comprehensive overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to gain access to a large lump sum, apply for a Commercial Mortgage today or find out more with Rangewell.
Drawing on expertise: Helping a business recovery with £25,000 Invoice Finance
Cashflow is vital for any business. When a large client takes too much time to pay, it will often mean serious cashflow problems for the small businesses that supply them. But things can be very much worse when a large business fails. If a large customer goes bust with a big pile of outstanding invoices the problems they leave to small businesses can become terminal. In the worst cases, the failure of a major customer could take your own business - and many others - with it. At Rangewell, we can work to ensure that your business does not get caught in this kind of domino effect. The challenge The failure of a major end-customer was the situation facing a client who came to Rangewell for help recently. Their business was in graphic design, they had a good reputation and things were going very well - until their largest client suddenly announced that it was insolvent. “They were a blue chip business with a long list of clients in building services. They seemed to be thriving - so we didn’t worry too much when they were a little late one month with of our invoice. But then it happened again the next month, and things went ominously quiet. Then we had a call from our business contact - they were going into receivership.” Our client was shocked when he realised that his business was going to lose their biggest revenue stream, with more than £75,000 of revenue. Not only did their future look less certain than it had, the money was already earmarked - staff needed their wages and the landlord for their London studio was owed rent. There were other suppliers who were owed money, and finance repayments to cover. “When the client went down I immediately saw that we had some real problems. We just didn’t have the cash to stay in business.” The designer did what he could to cut costs and managed to get some extra time to pay from some creditors. However, he did find some new business prospects. Some were happy to commission work, but the best terms that he could arrange involved a 60-day wait for payment. He could not keep his business open that long without some income. “Waiting for weeks and months for payment is usual in our line of work. But we could not afford to work that way any more.” Our client was desperate to get his business back on a sound footing and wanted to explore the possibility of a cash loan to cover the shortfall. We saw that his current financial position might prevent most lenders from providing the support he needed - finance in a turnaround situation can be difficult to arrange. But we saw there was a possible solution - with Invoice Factoring. The solution Factoring is a type of Invoice Finance, that can provide a solution for businesses with outstanding debts or an adverse credit history. With Factoring, the security for the finance is based on the strength of the businesses debtors. This means that as soon as a business issues an invoice for work done, the finance provider company can provide an immediate cash payment. Does your business suffer from long payment terms? See what Invoice Finance can offer you. Instead of waiting for 60 days or more to get paid, our client would be paid right away “Suddenly, I had a way to get the cash he needed to pay off my creditors and keep my business afloat. Getting paid immediately is unheard of in our line of work - but now we could pay off everyone and keep the doors open. As far as a I was concerned, Rangewell had worked a miracle!” How Invoice Factoring worked for our designer client With Factoring, the finance provider you send a copy of each invoice you issue to the funding provider. They will make an immediate advance, which can often provide 80-90% of the value of the invoice, though this amount will vary with different suppliers. You will receive a second instalment once your customer pays, which will be the balance less the invoice provider’s fees.The actual charge will be based on your company’s risk profile, along with the sector you work in. There were two other important benefits to our client from Factoring. The provider had its own professional credit control team. This would chase payments on his behalf, removing an administrative task, and letting him concentrate on his core business. Second, there was the opportunity to insure against customer defaults. A customer that failed to ay need never be a problem in the future. If you have similar issues with late or failed payments, talk to the Rangewell team to see what we can do for you.
Questions to ask when thinking about Alternative Finance
Although maintaining strong growth and sustainability is a vital aspect of running a successful business, achieving that goal isn’t always easy. As well as developing a detailed business plan and bringing together a team who believes in your vision, you also need to acquire the necessary funds. But if you’re an early-stage SME with a limited trading history, seeking more traditional forms of funding may not yield the results you were hoping for. However, instead of putting your plans on hold or abandoning them entirely, why not explore how the Alternative Finance industry could help? Offering access to a vast range of business finance solutions, this might just be the pathway you need to get the ball moving in your favour again. But as always, it pays to be fully aware of what you’re entering into before getting tied into any financial commitments. So if you’re looking to apply for business finance, some of the questions you need to be asking are: What Alternative finance products are available? What can Alternative Finance be used for? What qualifying factors do lenders look for? Is the lender familiar with your sector? What is the overall cost finance? Are there any additional costs and fees involved? What solutions could I apply for? If you’re searching for business finance, it really does pay to make sure you’re fully aware of what’s available. Although one of the greatest benefits of the Alternative Finance Industry is that it puts you within reach of a diverse range of business finance solutions, this also creates one of it’s biggest challenges. By choosing to explore what this pathway has to offer you could gain access to products and packages including Secured and Unsecured Business Loans, Bridging Loans, Commercial Mortgages, Merchant Cash Advance, Invoice Finance, Inventory Finance, Asset Finance, Working Capital Finance and so much more. And with each of these solutions working in different ways to benefit your business, you not only need to be aware of what your options are, but you also need to have an in-depth understanding of how they work too. That’s why speaking with qualified business finance professional can prove so advantageous. Have a growth project you want to get started? Worried about uneven cash flow? Or do you need to acquire new equipment? Apply for Alternative Finance or learn more about how your business could benefit. What can I use Alternative Finance for? This depends entirely on the type of product you apply for. Whilst some might only be suitable for specific purposes, others may carry little or no usage restrictions. As such, Alternative Finance can be used to aid and support any aspect or area of your business. So whether you need to acquire new equipment, update IT systems, move to another location, carry out renovations, release equity, resolve outstanding financial obligations, smooth out uneven cash flow or refinance existing agreements, Alternative Finance can be used to achieve virtually anything. You just need to be certain that you’re choosing the most appropriate product for whatever your business needs to succeed and grow. How do I choose an appropriate lender? When you take a look at Alternative Finance, you’re looking at products which lie outside of your local high street bank. As such, the types of lenders of lenders that you could apply to can range from boutique banks, specialist finance providers and alternative lenders to anyone else who may be interested in investing in your business’ success. Although this helps generate even more funding opportunities for your business, it also adds another level of complexity that you need to overcome. So when choosing a lender, you need to work with someone who is familiar with your sector and provides a variety of finance solutions. If they aren’t, you risk being tied into an agreement that might be inappropriate for your business. As such, exercising due diligence when it comes to your choice of lender would be wise. How much is the overall cost of an agreement? This can come down to a wide range of factors, including the type of finance agreement, choice of lender, security and the strength of your credit score. Collectively, what all of these factors affect is how much interest the lender charges throughout the course of the agreement. Interest is an important aspect that you need to keep an eye on when making your decision. Whilst products and lenders charge interest using an Annual Percentage Rate (APR) some may use other methods. For example, you might encounter lenders who charge interest per day. If you do, you need to consider the length of the agreement and how the interest stacks up when converted into APR. Should you need the agreement on a long-term basis, it could prove more expensive than using a product that charged using APR. Are there any additional charges that I should be made aware? As well as interest, you also need to watch out for any additional charges. These could range from set up fees, administration costs, legal costs, service charges, missed payment penalties, redemption penalties and exit fees to balloon payments. So before making your decision, you need to go through all the documents supplied by the lender in question carefully. If you have any questions or are confused about any aspect of the agreement, you can request to arrange a face-to-face meeting with the lender. Could your business benefit from an Alternative Finance solution? As a business owner, ensuring strong growth and remaining competitive both need to be at the top of your agenda. The challenge, however, is finding enough cash to do so. If you’ve been rejected from traditional forms of funding, dipping into your own cash reserves may seem like a smart decision to make. But this is also a risky strategy that can have lasting long-term consequences which may affect your ability to support future growth. So rather than gambling on your business’ future, why not explore how the Alternative Finance Industry could help instead? Offering you access to wide array of business finance solutions, you could source an agreement that’s appropriate for what you’re hoping to achieve. You just need to decide which one. At Rangewell, we have Access to Finance specialists working with over 300 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you throughout the application process. We’re with you every step of the way. So if you’re looking to raise funds for your business, apply for an Alternative Finance solution today or find out more with Rangewell.
Acting fast: Funding to buy £400,000 worth of stock - for £100,000
Some business sectors - and some geographical locations - can face additional challenges when raising cash. Small businesses, and especially sole traders, can be at a disadvantage when it comes to raising larger sums. In addition, some lenders are wary of the motor trade, where business fortunes can change very rapidly. Businesses based in Northern Ireland can also suffer from a lack of local lenders. We recently provided a solution for a business that faced all these issues - a loan that was key to the survival of the business. The challenge Our client was a custom vehicle business based in County Antrim. Their key activity was fitting tuning equipment to a range of customers’ vehicles, including Ford and Vauxhall models - and they depended on a close relationship with a stockholder which could provide the specialised tuning components required. The business had built a reputation over several years and was becoming an important name on the custom car scene, which is itself growing in popularity across Northern Ireland. When the stockholder announced their intention to cease trading it meant a crisis for the fitting company - but they were able to offer a lifeline. The stockholder had an inventory worth over £400,000. They were prepared to offer this stock - enough to allow the fitter to continue in business for 18 months or more - for just £100,000. It was a once in a lifetime opportunity for the fitting company, allowing them to cut their supply costs and provide instant access to all the tuning parts they needed. But it would also mean raising £100,000 in cash at short notice. Not only was it a very attractive opportunity for the fitter, it was one he could not afford to miss - because without that stock, he could not continue in business. There were no other suppliers carrying the items in Northern Ireland - or the Republic. The fitter approached his bank, but was told that as a small business, the sum was far in excess of anything that could be provided. Other lenders that he contacted directly, and brokers which he then called, told him a similar story - some adding that they were not prepared to lend to his business sector, which they saw as presenting a high risk. However, he then saw that Rangewell might be able to help where others could not. Looking to source funding when others have said no? Needing lenders to see the potential and not negatives? Contact Rangewell today and see how we can help you We are based in the City of London, but we work with lenders across the whole of the UK lending market. We understand the views and the lending criteria of each one - more than 350 in total - and we know those who may be most receptive to virtually any kind of lending proposition. In this case, we understood the challenges our client faced, and were determined to find a solution. The motor trade has proved a problem in recent years and, as a sole trader with no equity, our client would not present an attractive solution for many lenders. However, the circumstances behind the need for the loan could be seen as a positive. We knew that the value of the stock to be acquired should be sufficient to provide security for the loan itself. Stock Funding is a specialised area, but the stock itself was high value and non-perishable, which can be attractive to lenders as it may be possible to realise the value of a loan by selling the stock if the borrower is unable to keep up repayments. Turning to Rangewell for help with funding Lenders that provide Stock Finance may specialise in certain business sectors - and may not have the expertise to offer solutions for all areas of business or types of stock. However, we knew that one of the leading lenders who may provide Stock Finance have operations in Northern Ireland, and approached one of our contacts to discuss the possibilities. They were prepared to consider the motor trade, and to look at the proposition in detail. We helped our client prepare a business case for the funding, showing how it could boost his business, increasing his profitability, and so making the loan very affordable. We were able to secure all the funds he needed - £100,000 - at a rate of 2% per month. At Rangewell we can help arrange all types of business funding - including Stock Finance arrangements. So if you face any kind of business funding challenge, call us - we can help you find the answers.
how to find a Cashflow Financing broker
One of the most essential and trickiest aspects of running a successful business is making sure you have reliable cash flow each month. As well as supporting your working capital, your cash flow is also needed to stimulate investment and growth towards a sustainable future. But running into a cashflow shortfall at any point can have a knock-on effect in other areas of your business if left unchecked. That’s why looking into whether Cashflow Financing could be of benefit to your business as soon as any issues arise is so important. Cashflow Financing is a specialist business finance package that covers a wide range of financial solution which allows you to support your finances and target the source of the issue. However, with so many finance solutions available, business owners often seek the services of a finance broker or finance expert to support them - but not all are creqted equal. So if you’re looking to apply for Cashflow Finance but are unsure of which way to turn, here’s what you need to consider when searching for a suitable broker: How many sectors do they work with? How many products do they cover? How many lenders are they associated with? How closely linked are they to their associated lenders? How do their past customer rate their services? How many sectors do they work with? When choosing a broker or finance expert, you should choose someone who has experience and knowledge of your sector. Although cashflow is a crucial element of any business, the factors that affect it can vary from sector to sector. Plus, some brokers may only deal with specific sectors, and if your business operates outside of their expertise they won’t be in the best position to advise you. Therefore, in order to avoid wasting your time, it's always worth asking them to specify which sectors they work with. Having trouble coping with a cashflow shortfall? Need help maintaining your finances or completing an essential growth project? Apply for Cashflow Financing or learn more with Rangewell How many products do they cover? In addition, you want to be using the services of a broker who can access a wide range of business finance solutions. When discussing Cashflow Financing, we’re, in fact, talking about a variety of different finance solutions, including products such as Secured and Unsecured Loans, Invoice Finance, Asset Finance, Working Capital Finance, Merchant Cash Advance, Revenue Advance and Revolving Credit Facilities. However, some brokers may only work with a select number of these products and not others. Therefore, you need to seek the services of a brokerage that covers as many of these financial products as possible. Only then can you have the confidence that you’re being direct towards the most appropriate solution for your specific needs. How many lenders are they associated with? Another important aspect to consider is how many lenders they can source solutions from. If they can only approach a handful, then you are limited in the offers you may receive, so choosing an expert who can access multiple menders is preferable. This is important as it puts you in a much stronger position to compare the same type of product across different lenders, helping you to acquire a competitive rate and more favourable terms. Therefore, the more lenders that they cover the more confidence you’ll have that you've chosen the most appropriate solution for your business. How closely linked are they to their associated lenders? Whilst you want to look for an expert who can access plenty of lenders, it is also important to do some due dilligence and take a look into how far their relationship goes with any associated lender. When using the services of a broker, you’re entrusting them to be impartial and only present products that are to the benefit of your business. However, this may not always be the case. If you feel that you’re being repeatedly shown products from the same lender(s) it might be a sign that their relationship goes deeper than what you were lead to believe. In some cases, it might be that they gain more commission from that particular lender, or that they own the lender in question and vice versa. If you feel that such a relationship exists which isn’t to your benefit, consider your position when it comes to using their services. How do past customers rate their services? Another great way of reviewing the services of a potential broker is by assessing how their service stands with previous clients. You can do this by reading their case studies, online community forum or consulting customer reviews. If you spot any issues, try to determine what the root causes were and how they could have been avoided. Although everyone’s experience of a particular broker will be unique to themselves, if you notice a pattern of dissatisfaction emerging, it may mean that there are issues regarding their work ethic and how they operate. If so, you need to think carefully about whether to use their services or choose another broker. Could your business benefit from a Cashflow Financing agreement? In order to ensure the success of your business, you need to be able to maintain and push beyond your bottom line. However, should your business run into a slow trading period and suffer a cashflow shortfall as a result, how you decide to react could make all the difference. This is why choosing to apply for Cashflow Financing as soon as an issue emerges can be so crucial. But with so many products and lenders to choose from, sourcing an appropriate cost-effective solution to the crisis isn’t always a straightforward matter to resolve. Fortunately, there’s Rangewell. At Rangewell, we go above and beyond your typical finance broker. We are an Access to Finance specialist that works with over 300 lenders to offer you a complete and comprehensive overview of more than 23,000 finance products, while our business finance experts work to get you the most appropriate and affordable deal for your circumstances. Our services are free to use and we’ll also guide through the entire application process - we're here to support you from start to finish. So if you need help protecting your business’ growth and sustainability from a cashflow shortfall, apply for Cashflow Financing today or find out more with Rangewell.