Pub borrowing to be 'slightly cheaper', says Acorn Commercial Finance

By Gurjit Degun

- Last updated on GMT

Related tags Acorn commercial finance Business Finance Debt

Finance: Acorn Finance Commercial said that borrowing will be “slightly cheaper”
Finance: Acorn Finance Commercial said that borrowing will be “slightly cheaper”
Pubs are set to find it easier and cheaper to gain access to finance as a bank aimed at lending to small businesses has cut its fees for brokers.

Shawbrook Bank has reduced its arrangement fees to 1.7%.

Pub finance broker Acorn Commercial Finance, which works with Shawbrook and other banks, said that the move means borrowing will be “slightly cheaper”.

“It signals an opening up of the market and that lenders are keener on small businesses,” said Paul Thompson, managing director at Acorn. “It’s making borrowing slightly cheaper by taking limitations away for those who have found it hard to get funding.

“Cutting pricing makes it that bit more affordable. Shawbrook is showing an increase in its appetite to lend to small businesses.”

He reiterated that Acorn is funding 90% of sitting tenants through Shawbrook because the bank is willing to lend any VAT required on top of a mortgage.

Karen Bennett, head of sales and marketing for commercial mortgages at Shawbrook Bank, added: “We want to make Shawbrook the lender to follow in 2013, and we introduced these exciting improvements as a sign of our intent.

“Brokers are at the heart of our business and we value the strong relationships we share. There will be more good news to follow, so watch this space.”

Acorn set up a new facility — the Pub Reopening Facility — last year to lend against closed pubs, for licensees with a good track record in the licensed trade looking to buy a freehold.

■ Acorn has been short-listed for Broker of the Year at a business finance awards ceremony, the Business Moneyfacts Awards.

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