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Article Directory » Finance >> View Article
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Brewery Funding - Tips to Borrow More at Less Rate!
By: Kirthy Shetty
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Brewery loans are provided by large breweries to pubs, nigh clubs and bars. They are ideally suited for publicans who are planning to expand, start a new or carry out refurbishment. In order to avail low interest rates on loans you will have to sign a contract to get all your liquor, beer, wine etc from them.
Firstly, you must apply for license to set up a night club or a pub. Mean while chalk out a business plan on how you plan to pay back the loan, basically an in depth cash flow projections. If you are approaching a commercial mortgage lender, you can provide a deposit which is 20% the value of your total loan. This goes to prove how good a candidate you are, and how serious are you about starting a new business or expanding an existing one.
In a nutshell, you will be the chosen one if you have prior experience in the licensed trade. You provide a detailed report of what your earnings would be, the profits you plan to make and what is your expected or estimated business turn over in a year or so. You can easily qualify for new projects or existing set up. If you already have a loan on your business, take this opportunity to consolidate your business debts in case you are offered better loan rate. Why not pool all your earlier debts and get rid of them with a better rate mortgage. You can possibly consider releasing your equity which had accumulated more value since you used it for your old loan. Remortgage or consolidation is the option for you if the collateral has an appreciated value since it was last used. Take a wise move and switch over to another lender or apply for a refinance mortgage.
• Releasing increased equity in the premises for cash flow
• Use additional funding as a contribution to acquire another pub
• Repayment of a brewery loan
• Consolidation of existing loans
Pubs are now free to source their own suppliers, and breweries are competing for their business by offering discounts to pubs. Sometimes these discounts can be quite substantial for volume purchases. Commercial loans are arranged for a period of 10 -25 years and lenders secure debt with a charge on the property. If you default or fail to repay, they can sell your collateral in order to recoup their money.
Kirthy Shetty, Expert Author. Information on Commercial finance: http://www.forcommercialmortgages.co.uk
Get more information on: http://www.forcommercialmortgages.co.uk/pubs-leisure-finance.html
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