Start-up finance example

Start-up finance example

We have done a number of facilities with a major finance house which could be of interest to a new start company or a company embarking on a new project – simply put this is a secured commercial loan of up to £1,000,000 available up to 10 years. The helpful part is that the repayments for the first 9 months are only £100 per month. Commercially priced and the funder will accept freehold or long leasehold business premises or private property – first, second or even third mortgage to secure. Simple calculation – they look at 70% of the value of the property, deduct any prior mortgages and then advance 70% of the resulting amount. So a £500,000 property with a £150,000 mortgage would result in £200,000 of available security with £140,000 maximum advance. (£500,000 X 70% = £350,000 – £150,000 = £200,000 X70% = £140,000 advance)

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