Like most business owners the COVID pandemic forced the clients to act quickly with commercial decisions to adapt their business so they could continue to thrive. It therefore made complete business sense to stop renting, and purchase premises to trade from, to further strengthen the business.

When the opportunity arose to purchase the property next door, which has been vacant for around 5 years, the client spoke to Genie Lending straight away. Knowledge of the area, with a current client base and proven track record stood to strengthen the proposition. Furthermore, the property itself is a large space with an unused takeaway and restaurant on the ground floor and a huge 8 bedroom flat above.

Our client could see beyond the repairs that were required and the possible potential in the property. They approached it with a clear commercial plan, keeping their business goals in mind, whilst also seeing the opportunity for portfolio expansion. Through splitting the ground floor commercial space into a takeaway (to let out), and retail unit to move their existing business into (subject to local authority consents). They would then look to gain planning to convert the 8 bedroom flat, into four 2 bedroom flats which can be let to generate further income.

To attain the finance, our Genie Lending dedicated Case Manager worked closely with the client over the many complexities to attain the required funding. Our experienced Case Manager guided the client through the hurdles that they would face for example, with no planning in place to split the commercial element, or to convert the flats, a long term commercial mortgage is not possible. Secondly, development lenders will not lend if planning is not in place, and should they try and obtain planning before purchasing they run the risk of the vendor increasing the purchase price! Also counter to their application, was the poor condition of the property. Main stream bridging lenders were concerned that this could lead to unforeseen expense, that would be detrimental to the loan repayments.

Genie Lending were able to overcome all of this, and accomplish a bridging facility with a flexible independent lender, who could also see the potential in the property. Having visited the property personally, and obtained specialist reports, the lender was able to provide a funding facility to support the purchase, and moreover, when planning is in place will assist with the development finance.

Once fully developed the client will be able to refinance the whole building on to a long term mortgage. In doing this, our client will have an increased income from the takeaway and the accommodation rental of the flats, thus meaning that they will no longer have to pay rent on their own retail business!

If your business has found funding difficult to obtain you can trust Genie Lending to go to every extent to provide the correct finance quickly, for the result you want. As well as the household names in the industry we have access to proven lending sources who you will not find on the high street. Our aim is to help UK SME’s obtain funding for all their business requirements, whether that be growth, acquiring premises, paying HMRC liabilities or simply working capital. Genie Lending can assist with complete finance solutions.

The post Purchase of a commercial property appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Do some research – then do some more

Study the broker behind the business sale. The name of the broker behind the investment doesn’t have to be a big name BUT, a big brand broker backing a startup business certainly adds kudos and offers credibility to their client’s potential financial future.

Read and re-read the prospectus

Take a look over the company prospectus in detail. It will offer deep insight to:

• Who is running the company
• The company’s target market

There will often be substantial detail in the document. It will help you gain a much clearer picture of the risk versus the reward and help you decide between the following.

Caution wins the day

Anyone who wants to make money will always have to take some risk. Weigh up the pros and cons. Don’t be taken in by the promise of quick returns. If it sounds too good to be true, then it almost always is.

Set realistic targets

Be careful not to over-estimate your potential returns. It can be human nature to be overly-optimistic with such investments.

In the same way, returns on your investment, especially if the investment is with a new company, may come slowly. You should be aware that the failure rate with new companies is high, so factor this into your calculations.

Exit strategy

Think about at what stages you would be happy to sell or exit the business investment. It’s prudent to map out various scenarios in advance.

Finally

Your best resource in any investment is a financial adviser. He or she will be able to advise on the risk and reward.

Investing can be challenging, exciting and stressful but at the same time has the potential to be highly rewarding. As long as you prepare and research, risk can be substantially reduced, and the reward can be life changing for the better.

Our experienced team have the skills to obtain your funding requirements. Simply complete our Enquiry Form to see how Genie Lending can help you

The post How to Invest in Companies appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

If you need a commercial property it’s important to weigh up the pros and cons of both renting and buying. It’s not quite as simple as buying or renting a house and there are other business concerns to consider.

What classes as a commercial property?

If you are trading within the building or using the property for any kind of business purpose, then it is a commercial property. Even if you live within the building (for example you buy aretail premises or pub with an owner’s flat above) it is still classed as a commercial property. Here are some of the most popular types of commercial property:

• Office
• Warehouse or factory
• Shops or retail units
• Pubs, bars and restaurants
• Hotels and B&Bs
• Farm buildings
• Nursing homes and private clinics

Buying VS Renting

If your business is expanding or you’re looking for your first office, you need to decide whether to buy or rent a property. Most small businesses start off renting a space until they establish their turnover and know what they can afford when applying for a commercial mortgage. Here are some advantages and disadvantages of renting:

Renting pros

• Minimum deposit required compared to a large cash sum
• Easier to relocate or upscale/downscale as needed
• No maintenance costs

Renting cons

• Your landlord could increase the rent, affecting cashflow
• You might not be able to adapt the property if needed
• You will never own the property as a business asset

Some businesses rent a premises as a stepping stone before buying a commercial property, while others simply prefer to rent long term. Many businesses only require a small office or studio, for example, which is easier to rent. However if you’re thinking of buying here are the pros and cons:

Buying pros

• You know your monthly payments – not dictated by landlord
• You own the building so can make whatever changes you like
• The property could increase in value

Buying cons

• You’ll need a large deposit
• You’ll be responsible for maintenance costs
• More difficult to relocate

If you’d like to find out more about commercial mortgages, get in touch with our commercial mortgage brokers.

The post Do I Need a Commercial Mortgage? appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

To give the construction company or the estate agent the go ahead, you’ll need to find a funding source. Traditional mortgages, even buy-to-let mortgages or commercial mortgages are proving hard to get and unless you meet a strict set of criteria, it’s unlikely the bank will help you finance your project. But that doesn’t mean you should give up on your dreams – there are many other ways to get your property venture off the ground.

Investing in property can be difficult when you’re just starting out. Once you have a portfolio and can prove you can make a profit it’s actually easier to secure funding – but until then here are the options.

Cash

If you have a lot of cash ready for investing somewhere, for example if you’ve received a large inheritance, then this is the best option. Buying a property upfront is very rare, but if you’re lucky enough to have a large lump sum then you’ll reap the rewards with this kind of transaction. If you have a large figure but it doesn’t reach the asking price, putting as much as you can down as a deposit will obviously reduce the future repayments.

Mortgage

A buy to let mortgage and a commercial mortgage works differently to a residential mortgage. It’s important to know the risks before applying and worth checking if you’re eligible to secure this kind of mortgage. It’s a good idea to contact a loan broker who can search around for the best deals for property investment.

Alternative Finance Solutions

The average person probably won’t be able to use the first two options to fund their first buy to let property and start a portfolio. Luckily, there is another solution – alternative finance providers. These providers use investors and other means to provide loans and tailored finance solutions when an off-the-shelf bank mortgage doesn’t suit. Even individuals with no supporting accounts or an adverse credit history could be eligible for a non-status commercial loan and development funding.

It can be difficult to find the right property funding for you, so why not chat to our property financing experts today.

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