Business Finance questions answered by bfas.org

	Frequently Asked Questions
I have no deposit; can I borrow 100% of the property purchase price?
	Yes this can be arranged if there is additional security, over which a comfort charge can be taken
The property has a short-term lease; can finance be arranged?
	Yes but a deposit of 50% is normally required additional security is also useful.
I am just starting in business, and have no accounts; can I borrow money to buy the property?
	Yes you can borrow up to 85% of the property value, more if you have additional security
I have had some problems with credit, and have some adverse items against me; will this affect my ability to borrow to buy a business property?
	You can still borrow money to buy the property, but the lender may impose a small increase in the interest rate, because of the extra risks involved
I already run a business, but need some cash to help increase the profits and grow the business, can I borrow to do this?
	Yes, and even if the business is not showing great profits you may still be able to borrow the money
The business I am buying has trading accounts; can these be used to support the application?
	Absolutely, if these are sound accounts they will inevitably improve your options and lower the cost of any monies borrowed.
I need to borrow the money to buy the stock for the business; can I do this?
	Much Commercial borrowing is based on the value of the property, it may be possible to borrow for the stock, but the overall borrowing will normally not be able to exceed 70% of the combined property and stock value. There are, however, many options to borrow against stock.
We have just formed a Limited Company on the advice of our accountants; can we buy the property in the name of the Limited Company?
	Yes, it may be that the directors have to give personal guarantees, but the monies can be obtained. Once your limited company has a good track record it can often stand on its own feet to borrow money against its own assets.
I have done some property renovation, but need 100% to buy and develop a project I have seen; can I borrow the money?
	Yes, a well thought out development plan with a well thought out method of paying the loan back means the borrowing can be achieved. The loan is intended to be short term
Can I borrow some money on a short term bridging basis against a Commercial Property?
	Yes, up to 70% of the Open Market Value can be achieved on this basis, more in certain circumstances.
My Bank has offered me funding at 1% over Bank Base Rate; what should I do?
	Accept the offer, nearly always the benefit of trying to beat a good rate is more than lost with the costs of moving the loan
My Bank want to call in my overdraft, is there anything I can do?
	Providing there is suitable assets available the answer is yes
To keep costs down I only want to pay interest when I start the loan; can this be done?
	Yes a loan with interest only can be arranged for a period of the loan in many cases.
I have a portfolio of buy to let properties and would like to have a facility to buy new properties without having to apply for a mortgage firs; is there any way of doing this?
	Yes a facility can be put in place (providing there is enough equity in the properties)
Is this a comprehensive list of questions?
	No, please fell free to contact us with any query you may have. If the deal can be done we aim to do it. The Business Finance Advisory Service (bfas.org) 0845 082 2351

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