Fifty-million-pounds (£50m) of exclusive funding for would be care operators seeking to invest in the care home, pharmacy and children’s day nursery sectors is today being made available by Christie Finance, the specialist commercial finance broker.
In addition to this care finance, Christie Finance has announced a second £20 million tranche for clients in the pub, hotel and retail sectors. An initial £20m tranche for these sectors earlier this year was massively over-subscribed.
David Grant, Head of UK Business Mortgages for Christie Finance, says: “The corroboration of open-for-business-Britain usually lies in the visibility and activity of the lending fraternity. And there have been some encouraging recent signs that some of our lending institutions, including those that remain part-state-owned, are coming back to the sectors in which we operate — namely, hospitality and leisure, care and retail. The availability of this £70m worth of funding proves that.”
Traditional lenders are once again supporting and financing new businesses, taking a new pragmatic approach to lending in some sectors. Christie Finance is noticing that its clients are taking advantage both of this and the subsidised rate of borrowing offered by the Government’s new national Loan Guarantee Scheme (NLGS).
David Grant adds: “The 1.0 per cent discount on interest rates from the NLGS has provided a real fillip in tough trading conditions. We have also seen clients take advantage of a less-publicised element of the NLGS – a cash-back facility. For example, a £1m loan would qualify for a cash-back lump sum of £50,000 upon drawdown of a loan. This is a great aid to cashflow or to covering the costs of buying or re-financing a business.”
Christie Finance has further evidence of a restoration of confidence with a significant increase in the number of borrowers going on to complete their deals in the year-to-date, compared with the same period last year.
David Grant says: “At this time last year around 30 per cent of borrowers did not proceed to completion, while in 2012 around 90 per cent are moving forward to complete their deals — this is a sign of more realistic lean terms being offered by lenders and improved customer confidence in the potential for new business purchases.”
To find out more about how Christie Finance can help new business ventures see www.christiefinance.com