Running a Pub - Pubs for Sale, Lease and Rent

Making that first break into the pub trade isn't easy, but if you have the right experience and a solid business plan, you should be able to secure the right finance package. Potential licensees should be aware that getting a mortgage to buy a business such as a pub is not the same as walking into a building society or bank when buying a house.

Buying a pub requires a more specialised type of funding and even though there are many banks which are willing to give mortgages, there are a wide range of other funding sources, such as private lenders, where you could get a better deal.

By far the most important factor a lender will look at is your experience. 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 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.

Follow this link for more information on running a pub in England, Scotland or Wales