What is Pub Funding?

A pub is a unique business and pubs vary significantly from the traditional local to the country pub, a city wine bar to a national chain, New purchase. As you would expect, there are different types of funding available to pubs from a wide source of lenders.

Pub MortgagePub RefinanceBuying a PubPub FundingMortgage for a Pub

Commercial Pub Mortgage

Publicans can obtain Commercial Mortgages, secured on the freehold premises, for a number of different reasons:

  • Repayment of a brewery loan
  • Consolidation of existing loans
  • Buying out a retiring shareholder / partner
  • Sitting tenant wanting to acquire freehold
  • New purchase / auction purchase
  • Premises refurbishment or extension
  • Releasing increased equity in the premises for cash flow
  • Use additional funding as a contribution to acquire another pub

Pub funding can be obtained for:

  • Pub funding of up to 60% of the value of the property, 100% with additional security. All subject to serviceability.
  • Competitive interest rates.
  • Access to a wide choice of lenders to secure the best deal for you.
  • Flexible repayment terms up to 25 year funding.
  • Very easy application – just click the enquiry form and leave the rest to us.
  • No up front fees!

Brewery Loans

Traditionally the large breweries have provided loans to publicans. These brewery loans are at a relatively low rate of interest making them an attractive option for pub finance. In exchange for the low interest rate, the publican is contracted to buy all beer, wines and spirits from the brewery at full price.

Brewery loans are also structured whereby interest rates are reduced even further provided target sales are met.

Due to consolidation in the brewery sector, many tied pubs have been sold off. These independent pubs are now free to source their own suppliers, and breweries are competing for their business by offering discounts to pubs. Sometimes these discounts can be quite substantial for volume purchases.

Brewery loans used to be a cost effective way of financing a pub, and still have an important part to play with smaller pubs. However many pubs are now finding that it is much more cost effective to replace brewery loans with a Commercial Mortgage. This has the advantage of not being tied to one supplier and the ability to receive improved margins due to receiving supply discounts.

© 2012 : Sterling Capital Reserve Ltd

Sterling Capital Reserve Ltd
Sterling House, 10 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550

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ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.

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