Financing a pub: Raising the funds to buy a pub

By far the most important factor a lender will look at is your experience. From what you say, you seem to have had six years of experience in a good range of establishments.

Then you will need to show that the premises you are thinking of getting involved with has the potential to make money from a number of sources. As well as wet sales, the lender will be looking for potential in food, accommodation, music, entertainment or whatever you think the business is best suited to.

Lenders are more likely to back you if you’re looking at a town pub than a rural one, though if you can show strong food sales, getting finance for a village or country pub need not necessarily be a problem.

A thorough understanding of the demographic of the local area is vital.

With this information you can devise a sound business plan based on the needs of the local population.Finally, you need to show how you plan to grow the business over time by establishing your business and marketing it within and beyond the local community.

If you can demonstrate all that, commercial funding of single freehold pub purchases for up to 80 per cent of the valuation can be obtained.

Mark Greig is managing director of licensed property agency Paramount Investments, which arranges funding for pub acquisitions through broker Chase de Vere.

For more on buying and financing a pub in the UK

Paramount Investments are specialists in sourcing freehold and leasehold pubs for sale and other pub company or brewery investment opportunities in England, Scotland and Wales for potential property investors.

Paramount Investments

150 West End Lane
West Hampstead
London NW6 1SD
DDI: 020 7644 2307
Fax: 020 7604 3457
Mob: 07949 175 280

Web: http://www.paramount-investments.co.uk
Blog: http://uk-pubs-for-sale.blogspot.com/