I've worked in bars and nightclubs since I was 18. I'm now 24 and trying to get into the trade as a licensee but I have trouble with the finance side of it. Can you offer me any advice?
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.
By far the most important factor a lender will look at is your experience. From what you say, you seem to have had six years of experience in a good range of establishments.
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 you think 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.
Mark Greig is managing director of property agency Paramount Investments, which arranges funding for pub acquisitions through broker Chase de Vere