Financial points to consider when buying a space for your beauty business

Finance expert, Gary Hemming of ABC Finance, serves up some insight on funding options available to nail salon businesses…

During the life of a business, there will naturally be times when additional funding is required. This can be for a number of reasons and is a crucial point in the running of a business.

There are more options than ever available to raise finance for a small company, which is a great thing for business owners, but it can make it harder to choose the right option for you.

When buying a property for your business, the most suitable product for you will usually be a commercial mortgage. Commercial mortgages will lend you the funds to purchase a property and allow you to repay the funds over a longer term, which will lead to lower monthly repayments.

Commercial mortgage applications are assessed using the credit history of both the company and the business owners and the ability to make the monthly repayments. Each lender has their own methods of assessing these things and if one lender declines your application, you may still be accepted by another.

Lenders will allow you to borrow up to 75% of the value of the property you’re buying or refinancing. This is known as the ‘loan to value’ and is a key factor in calculating your maximum loan along with affordability.

Although it’s possible to borrow up to 75%, the lowest rates will usually be available for applications at no more than 70% loan to value.

Gary specialises in the arrangement of bridging loans, commercial mortgages, invoice finance, asset finance and business loans.

For more information, visit www.abcfinance.co.uk