Mark and his wife seemed to tick all the boxes and were confident of getting funding for a new national equestrian centre and holiday cottages business.
They had cash funds of £500,000 for a deposit. The property they found was £1.5m, giving them a 67% loan to value (LTV)
Mark was a successful business man with an annual income of over £400,000 per annum. His monthly income would support the start-up phase of the business. His wife had over 20 years’ experience and influential contacts in the equestrian industry.
Despite assets and experience, lenders would not leap
They were both confident about getting funding. But they hit brick walls with all their traditional contacts and lenders.
The selling agent suggested Mark and his wife talk to R&BS. We met the clients to get a full understanding about their funding proposal.
Jim Richards, R&BS Director says,
We carefully prepared a business lending proposal backed-up by a two-year forecast and informed business assumptions for the new equestrian enterprise. This was presented to lenders we knew could help. The following week, we were successful in getting meetings with two potential lenders, and one resulted in a positive funding offer for Mark and his wife.
Policies, rules and lending managers can cause obstacles
The truth is that equestrian finance and rural finance is a specialist area of finance. It’s often not the clients or the business that is the sticking point. But it’s the rules and lack of experience of some of the lenders and their managers that stops a deal going through – or even being offered.
We’ve built up years of experience in presenting a well-prepared business case to the right rural financing sources of lending. We know who to go to. And we know how to pitch it.