FAQs

Q: Can I borrow against the 'goodwill' of a business and equipment, fixtures and fittings?

In general terms yes. If you are buying a business trading from freehold premises we will obtain a professional report to verify the overall value of the business goodwill etc which is sometimes referred to as ‘market value’ or MV1. Subject to satisfactory confirmation it is usually possible to secure an advance against the overall business valuation. Where the purchase of a trading business also includes machinery, vehicles equipment, stock etc. it is generally more appropriate to structure a separate loan to acquire these assets on a short- term lease or stock finance arrangement.

Q: What level of support will I get for a property development loan?

With a Property Development loan much depends on the type of project being undertaken, the overall borrowing requirement and the anticipated profit margin that project will generate. In addition the proven experience of the developer, their financial standing and / or the proposed contractor will also count heavily towards the underwriting decision.

Q: What is the maximum Loan To Value (LTV) achievable on a commercial mortgage?

There are no hard and fast rules and each case will be assessed on merit. In general terms we advise our clients to be prepared to deposit circa 25% to 30% of the property or business value. ie a LTV in the range 70-75%. Mortgages for pubs will generally be limited to 60% to 65% LTV due to the higher risks associated with this sector of the market. Sitting tenants can often secure a higher advance.

Can I borrow against the ‘goodwill’ of a business and equipment, fixtures and fittings?

capital8-finance2021-10-06T16:59:49+01:003 September 2021|

What level of support will I get for a property development loan?

capital8-finance2021-10-06T17:00:04+01:003 September 2021|

What is the maximum Loan To Value (LTV) achievable on a commercial mortgage?

capital8-finance2021-10-06T17:00:18+01:003 September 2021|

Get a personal consultation.

Call us today on 07746 937 796

Request a Quote

Our advice is given freely, in confidence, and without obligation.
Call 07746 937 796 or submit an enquiry and we will get back to you as soon as possible.

A finance brokerage offering a full range of funding solutions to businesses, property developers & investors and professional landlords and homebuyers.

Contact Us

56 Mayfield Grove,
Dundee,
Scotland,
DD4 7GZ,
UK

07746 937 796

enquiries@capital8finance.co.uk

Data Protection Statement : We comply fully with the General Data Protection Regulations ( GDPR ) 2018 and all client data and information you provide to us will be managed, processed and kept secure in accordance with the GDPR. We will never share, sell or distribute client data to any other third party other than Banks, Lenders , Brokers or Packagers whom we believe may serve the best interests of you the client.

To view our full Data Protection Statement click here.

To view our Client Privacy Policy click here.

To view our Terms of Business click here.

To view our Complaints Procedure click here.

Capital 8 Finance is a trading style of Yu Finance Ltd (FRN:808286) are Credit Brokers and are Appointed Representatives of White Rose Finance Group Ltd (FRN:630772) Authorised and Regulated by the Financial Conduct Authority. PLEASE MAKE BORROWING DECISIONS CAREFULLY, PROPERTY OR OTHER ASSETS OFFERED AS SECURITY MAY BE AT RISK IF YOU CANNOT KEEP UP WITH REPAYMENTS.