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.

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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.

Here are a few places to consider in placing your housing investment to good use:

Glasgow

Glasgow is rated as having one of the highest ROI yields in the UK mainly due to their population primarily composing of 21-35-year-olds (roughly 28 per cent) of the total population in this Scottish city). Glasgow’s unfortunate slow house price growth in the past is precisely why they offer more affordable house prices compared to other cities in the UK. Since June of 2016, property prices have had a consistent rate of increase of 0.7% per month. For Glasgow to gain a significant rental yield, property prices are inversely correlated with rental value.

Milton Keynes

With Milton Keynes’ optimal location being roughly equidistant to Birmingham, Oxford, Cambridge and the city of London, finding rental in this area makes it a great fit for anyone who chooses to study or work in any of these areas. With the Chancellor’s proposal to improve transport between Cambridge, Milton Keynes, and Oxford, investors are sure to consider Milton Keynes as a prime spot for investment.

With the Government’s infrastructure investment, the potential lure for investors, young professionals, along with a combination of relatively cheap accommodation and convenient transport links bodes well for the future.

Birmingham

Birmingham still stands as a property investment hotspot even into Q3 of 2018. Recently ranked in 21st position concerning its overall investment prospects compared to its domestic and European competition, the report is a testament to Birmingham’s popularity. Commercial industries have taken an interest, as HSBC and HMRC are setting up offices based in Birmingham which is sure to attract young professionals who are looking for a place to earn and a place to stay.

Choices are ripe for the taking

Because of the London Plan draft proposals, the uncertainty of the market is lingering and casting some doubt for investors. Though the London’s plans for sustainability is slated to last for until 2036, it is unsure if it will mean a steady growth curve for the market or if things will take a turn for the worse before it gets better.

Regardless, there are other property areas ripe for investments while the extent of the ambiguity of London’s policies is yet to be set until this coming November.

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

Statistics from: https://www.onetouchinvestment.co.uk/news/buy-to-let-strategy/best-places-invest-property-uk-2018/

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Many companies opt for a commercial bridging loan because they can be arranged in a very short amount of time compared to other types of finance. They are also available up to very large amounts – up to £20 million from private and flexible lenders. Short term bridging loans are available to individuals or businesses, but are generally used for the same purpose.

In today’s uncertain economic market, it is likely that most small businesses will experience hardship at some point. Cash flow is a major concern, as sometimes bills are going out before your clients have paid their invoices. It’s difficult to balance the books, and to keep the business going you may need to consider applying for finance.

Lots of companies depend on loans and other alternative finance solutions to keep them afloat. Most of the time it’s their only option to stop the business going bust or to keep up crucial payments. Sometimes these difficult times are out of the control of the business, it is often external factors which influence their position. However, you need a good back up financial plan to get you out of the red and into a safe place while the market improves. A bridging loan could be the answer.

What is a Bridging Loan?

The name of this loan is based on imagery – think of a bridging loan as a temporary financial bridge, to keep the borrower out of water until they can pay the money back. Bridging finance is a short term loan, up to millions of pounds, which is usually secured by against property.

What are the Advantages?

As a secured, short term loan, bridging finance can be arranged very quickly. This makes it ideal for property investors or anybody looking to buy a property at auction or looking to renovate a property for resale.  Bridging loans are typically paid back between one and 12 months, which is why they are often used in buying and selling property.

However, businesses can also benefit from bridging finance if they need help with cash flow and are expecting a large chunk of income in the next year. For example, businesses with a seasonal sales fluctuation may require some extra cash in the winter, but know they will be able to pay it back in the summer when sales increase.

Bridging loans are a simple way to take advantage of short term opportunities. They are also relatively easy to be accepted for, as they are a quick loan with no credit checks – often a logical choice for lenders who have been refused for other types of loans. However, you must make sure you have a strong repayment plan in place as it can become difficult to repay the loan in such a short amount of time.

What can a bridging loan be used for?

Generally, because bridging loans are a short term finance option which needs to be repaid within 12 months, they are used for property development or purchases. For example, if you want a quick sale of a property or need urgent funds for repairs or renovations, a bridging loan could help. Most people don’t have large sums of money saved up for property investment, but taking out a traditional loan can take too long in the property chain. To take advantage of investment opportunities, sometimes bridging finance is needed.

Bridging loans are a great option at auctions and lots of buyers complete purchases with bridging finance. A typical loan from a traditional lender would probably take too long for someone who wants to snap up a property at an auction.

Another option is property investment for a quick resale. If a buyer wants to make minor improvements and then put the property back on the market to sell within 12 months, a bridging loan can assist with the initial purchase.

What happens at the end of the term?

Before taking out a bridging loan, it’s important to understand the implications of such a short term loan. The finance term usually ranges from one to 12 months, and there will be security set up on the loan if you don’t repay it in time. There will also be a lump sum of interest added at the end of the loan to take into account.

There is another option – at the end of the loan, you can convert the bridging finance to a commercial mortgage if you have used the cash for a business property. This gives borrowers even more opportunities for repayments and further investments.

If you’d like to find out more about bridging finance and how it could help you, speak to our professional brokers.

Updated: 3rd April 2018

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The slowdown in growth is usually seen as a negative thing, as homeowners will lose out when selling. However, a fall in house prices can create an interesting prospect for the entrepreneurial opportunist. If buyers move fast, they can take advantage of low house prices before they are predicted to start rising again.

Halifax, Britain’s largest lender, released its figures for June showing property prices were falling fast. UK prices fell 1% in June, which is the largest drop since January. It is the third month in a row in which figures have fallen, and that hasn’t happened since 2012. According to Halifax, growth in house prices is now down to 2.6% in June – the lowest increase in four years.

The evident slowdown is particularly evident in London, where house prices are inflated compared to the rest of the UK. In fact, over a third of properties on the market in July slashed their asking prices according to research from HouseSimple. So is now the time to invest in a property or two?

Falling House Prices: An Opportunity?

First time buyers are happy at this news as it means they might actually be able to get onto the property ladder at last. However, commercial buyers and investors could also capitalise on falling house prices. A reduction in prices means buyers get better value for money, however more owners may hold onto their property for longer to see if they will be able to get a higher price in the future.

A fall in property prices can be a perfect business opportunity – but you’ll have to act fast. You never know which way the market will swing, so you could end up paying thousands more even by pushing back your search a month or so. If you find the ideal property at an ideal price, be sure to secure funding from a lender who will pay out in good time. If a mortgage application takes too long or is refused, then the seller will look elsewhere. If you want a quick transaction then sometimes it’s acceptable to apply for bridging finance instead, which is paid out at short notice. Once the short term loan needs to be paid off, you can convert it into a mortgage if needed.

Do you want to see what property opportunities are waiting for you? Speak to us today about commercial mortgages and bridging finance.

The post Should you Take Advantage of Falling House Prices? 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.

The post How to Fund your Property Project appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

If you’re wondering whether to ask lenders about taking out a commercial mortgage, read on to see the top five ways it could help your business.

1. Avoid rent increases

When you decide to start a business, you need to decide if you’ll start off renting a space or whether you should buy and own it. While it’s a big commitment to take out a mortgage and buy the business premises, bear in mind that the rent on city offices and shops is forever increasing. If you get the right type of low interest mortgage then you can avoid rent hikes and possibly save money in the long run. Many business owners start out renting and then look to buy a property once they are making a good profit.

2. Refinance commercial property

This is another way of saving money for your business. Owning commercial property isn’t much different from owning your residential home – you’ll pay monthly payments on the mortgage, plus interest. Different lenders offer different deals, and sometimes you could save by switching to another mortgage provider and refinancing the premises. Bagging a lower interest rate could reduce your monthly payments and free up cash to spend on other areas.

3. Redevelop or renovate

Commercial mortgages are mainly used to buy business property, but the funds can also be used to redevelop a property. Should you wish to expand your premises or undergo a refurbishment, you’ll need a lot of money upfront. A commercial mortgage can cover these costs and the extra custom you’ll get from the expansion could cover the monthly repayments.

4. Capital gain

As with any type of property investment, look after it and you should benefit from capital gain over time. If the property increases in value from the time you bought it, this is another business asset. If there was ever a point when you wanted to sell your business or downsize, you could sell the property and earn extra cash.

5. Pay less tax

The interest payments on commercial mortgages are actually tax deductible. This means that business owners may be able to reduce the amount of tax they pay each year with a commercial mortgage.

Interested in finding out more about commercial mortgages? Get in touch with our business finance experts.

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Being a property investor takes up a lot of time – so it’s not always a good idea if you haven’t got a lot of time to dedicate to market research and property management. Buy to let lending can be difficult to acquire without previous experience in the property sector, and being a landlord or paying a property management agency can be more expensive than you first thought.

If you’re wondering whether this is the right decision for you, let’s take a look at the pros and cons of property investment.

Pros of Buy to Let

Buy to let is a great investment choice, as having money in property is a tangible and reliable investment. Even if the market crashes, you can wait until house prices rise again to cash in your return. Here’s some other advantages:

Return on investment – this is pretty easy to calculate for investors and landlords. Find out the rental yield on each property before buying it, and you’ll be surprised at how much you could earn annually.

Funding options – banks are tightening requirements for buy to let mortgages, and further tax changes bring more bad news for landlords and borrowers. However, there are many other ways to secure funding for buy to let investment, such as alternative loans and peer to peer lending.

Cons of Buy to Let

After a series of government changes to the sector, buy to let isn’t quite as lucrative as it once was. Here’s some of the downsides:

Charges and tax – When buying and selling a property which is intended for buy to let, you’ll have to pay a much higher rate of stamp duty and other taxes. This should be considered when calculated the ROI.

Time and work – being a landlord doesn’t mean you can find tenants and relax. You have a legal obligation to keep up with repairs and maintenance, which will take time to organise and cost money to ensure is well maintained.

Becoming a buy to let property investor is hard work, but if you have the time to commit to the venture then it can be a secure investment.

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