Christie Finance releases £20m tranche of financing for pub and hotel investments
Christie Finance, the financial arm of property agents Christie & Co has released a second £20m tranche for customers seeking to invest in the pub, hotel and retail sectors.
The move comes after the first tranche released earlier this year was oversubscribed.
David Grant, head of UK business mortgages for Christie Finance, said: "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."
Christie Finance said it had noticed its clients had taken advantage of the subsidised rate of borrowing offered by the Government's new national Loan Guarantee Scheme (NLGS).
Grant added: "The 1% 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 refinancing a business."
Christie Finance said there was 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.
"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," he said.
By Neil Gerrard
E-mail your comments to Neil Gerrard here.
Catererandhotelkeeper.com jobs
Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs
