Raise the Bar: Secure Your Pub’s Future with Expert Pub Finance
The Heart of the Community
Acorn.finance – Funding Your Pub’s Legacy
Since 1997, Acorn Finance has been a cornerstone of the UK pub industry, providing tailored finance solutions and expert guidance to publicans across the country. We understand the unique challenges and opportunities of running a pub, from navigating seasonal fluctuations to capitalising on local events. Our passion for the industry drives us to secure the best possible funding options for your specific needs, whether you’re a seasoned landlord or just starting your pub journey.
Beyond the Pint
A Comprehensive Approach to Pub finance
At Acorn.finance we go beyond simply providing a loan or a pub mortgage. We act as your dedicated financial partner, offering a comprehensive suite of services designed to support your pub’s success:
- Acquisition Finance: Whether you’re purchasing a freehold, leasehold, or taking over an existing business, we’ll structure the deal to maximise your investment.
- Refurbishment & Development: Transform your pub into a destination venue with funding for renovations, expansions, and upgrades. Create the perfect beer garden, revamp your interiors, or add accommodation to attract a wider clientele.
- Working Capital Solutions: Manage cash flow effectively with flexible working capital solutions. Cover seasonal expenses, invest in marketing campaigns, or stock up for those busy holiday periods.
- Equipment Finance: Upgrade your kitchen, invest in state-of-the-art bar equipment, or enhance your entertainment systems with tailored equipment finance options.
- Specialist Advice: Our experienced advisors understand the nuances of the pub industry. We’ll provide expert guidance on financial planning, business strategy, and maximising profitability.
Unlocking Your Pub’s Potential
Why Choose Acorn Finance?
- Industry Pioneers: We were instrumental in securing the first 100% mortgages for sitting tenants, empowering publicans to take control of their destinies.
- Deep-Rooted Relationships: We’ve cultivated strong relationships with a diverse network of lenders, including specialist pub finance providers, high-street banks, and private investors.
- Bespoke Solutions: Your pub is unique, and your finance solution should be too. We’ll take the time to understand your vision and tailor a funding package that aligns with your goals.
- Dedicated Support: Our team provides ongoing support throughout the process and beyond, ensuring you have the financial resources and guidance to navigate the ever-changing pub landscape.
- Commitment to Community: We believe in supporting the heart of British communities. We’re passionate about helping pubs thrive, creating vibrant social hubs and contributing to local economies.
Bridging Loans for Pub Purchases
Breathing New Life into Closed Units & Auction Wins
Acquiring a closed pub or winning a pub at auction can be a fantastic opportunity, but it often requires fast access to capital. Bridging loans can be the perfect solution, providing the necessary funds to secure your dream pub and get your business up and running quickly.
Here’s how a bridging loan can help:
- Speed: Bridging loans can be processed much faster than traditional mortgages, allowing you to meet tight deadlines for auction purchases or secure a closed pub before someone else does.
- Flexibility: Bridging loans can be used for various purposes, including:
- Deposit for an auction purchase: Secure the winning bid with a bridging loan to cover the deposit.
- Purchase of a closed pub: Acquire a closed pub quickly and have time to develop your business plan and secure a long-term mortgage.
- Refurbishment and renovation: Fund essential repairs, upgrades, and renovations to transform a closed pub into a thriving business.
- No income proof required: If the pub is not currently generating income, bridging lenders may not require proof of income, focusing instead on the value of the property and your exit strategy.
If you’re considering purchasing a closed pub or bidding on a pub at auction, contact Acorn Finance today to discuss your bridging loan options.
Ready to Raise a Glass to Your Pub’s Success?
Get in touch with our pub finance specialists today.
Download our comprehensive guide to pub finance. (New version coming soon – please request your copy here.)
Acorn.finance: Pub finance FAQs
What is a pub mortgage?
A pub mortgage is a specialised commercial mortgage designed specifically to finance the purchase of a public house (pub). It’s structured differently than a residential mortgage, taking into account the unique characteristics of the pub business.
How is a pub mortgage different from a regular mortgage?
Commercial Property: Pubs are considered commercial properties, even if they have living quarters. This means your mortgage will be a commercial mortgage, not a residential one.
Business Plan: Lenders will heavily scrutinise your business plan, including your experience, marketing strategy, and financial projections. Your Acorn.finance specialist will help you put together the information the lenders need to get you the best mortgage possible.
Higher Deposit: Pub mortgages often require a larger deposit than residential mortgages, typically 25-40% of the property or business value.
Shorter Terms: Loan terms for pub mortgages may be shorter than residential mortgages, typically around 15-20 years.
Higher Interest Rates: Interest rates on pub mortgages are usually higher due to the perceived higher risk associated with the hospitality industry. At Acorn.finance we know which lenders will provide mortgages for which businesses, so your interest rate will be market leading.
What types of pubs can I get a mortgage for?
You can potentially get a mortgage for various types of pubs, including:
Country Pubs: Pubs in rural locations, often with accommodation.
Freehold Pubs: Where you own both the building and the business.
Leasehold Pubs: Where you own the business but lease the property from a landlord (often a brewery or pub company). As the mortgage is only against the trade of the business, it will need to be trading profitably to support the lending.
Gastro Pubs: Pubs that focus on high-quality food alongside drinks.
Community Pubs: Pubs that serve as a hub for local residents. We can even arrange pub finance for community-owned pubs, co-operatives and charities.
City Centre Pubs: Pubs located in busy urban areas.
What are the eligibility criteria for a pub mortgage?
Lenders will assess several factors, including:
Credit History: A strong credit score is helpful but not essential.
Experience: Experience in the hospitality industry is highly valued, if you have not owned your own business before then management experience will help.
Business Plan: A detailed and well-researched business plan is crucial in many cases but it need not always be long. Quality is more important than quantity!
Financial Projections: Demonstrate your ability to generate sufficient income to cover mortgage repayments and operating costs. If the pub vendor has accounts, your projections should be based on their existing trade.
Deposit: A substantial deposit shows your commitment and reduces lender risk. It need not always be cash (although it’s preferred), your deposit could be security in another property.
Deposit: A substantial deposit shows your commitment and reduces lender risk. It need not always be cash (although it’s preferred), your deposit could be security in another property.
What other costs are involved besides the mortgage?
Valuation Fees: A professional valuation of the pub property is required.
Legal Fees: Solicitors’ fees for conveyancing and legal documentation.
Survey Fees: A survey to assess the condition of the property.
Stamp Duty Land Tax (SDLT): A tax payable on the purchase of the property.
Lending Fees: We have to charge a fee for our services in order to be 100% independent, the pub mortgage lender will also charge a fee which might be added to the maximum mortgage available.
Can I get a pub mortgage with bad credit?
Although it’s more challenging to get a pub mortgage with bad credit, it is certainly not impossible. Specialist lenders may consider your application, but they’ll likely require a larger deposit and charge higher interest rates. After a few years of success we’ll be able to refinance your pub mortgage onto a more competitive interest rate.
What is the difference between a pub mortgage and a pub loan?
Pub Mortgage: A long-term loan secured against the pub property.
Pub Loan: Can be secured or unsecured, used for various purposes like purchasing equipment, renovations, or working capital. Typically shorter-term than a mortgage.
How can I increase my chances of getting approved for a pub mortgage?
Improve your credit report: Pay your bills on time and reduce any outstanding debts.
Gain experience: Work in the hospitality industry to gain relevant experience.
Create a strong business plan: Demonstrate a clear vision for your pub and its profitability.
Save a large deposit: The larger your deposit, the lower the risk for the lender.
Use a specialist broker: An Acorn.finance broker will help you find the right lender and navigate the application process. We’ve had pub finance applications approved by lenders who had previously turned the same application down.
Why should I use Acorn Finance for my pub mortgage?
Expertise: We’ve been specializing in pub finance since 1997.
Network: We have access to a wide range of lenders, including those who specialise in pub mortgages.
Tailored Solutions: We’ll find the right mortgage to suit your individual needs.
Dedicated Support: We’ll guide you through the entire process, from application to completion.
Can I get a bridging loan for a pub that needs significant renovation?
Yes, bridging loans can be used for refurbishment purposes. Lenders will consider the scope of the work and its impact on the property’s value.
What is a typical exit strategy for a bridging loan on a pub?
Common exit strategies include:
Refinancing with a traditional pub mortgage: Once the pub is operational and generating income, you can secure a long-term mortgage to repay the bridging loan. Your Acorn.finance broker will keep in touch to arrange this for you as soon as you’ll be approved.
Sale of another property: If you’re selling another property to fund the pub purchase, the proceeds can be used to repay the bridging loan.
Business sale: In some cases, the sale of the pub itself can be an exit strategy, although this is less common. It’s commonly considered once the business is trading successfully.
How much can I borrow with a bridging loan for a pub?
Bridging loan interest rates are generally higher than traditional mortgages due to the increased risk and shorter term. Rates vary based on the LTV, loan term, and your financial profile.
Is it risky to use a bridging loan for a pub purchase?
Bridging loans carry some risks, primarily:
Property as security: If you fail to repay the loan, you could lose the property.
Higher interest rates: The cost of borrowing can be significant.
Shorter terms: You’ll need a clear plan to repay the loan within the agreed timeframe.
How can Acorn Finance help me secure a bridging loan for a pub?
Expertise: We have extensive experience in pub finance and bridging loans.
Network: We work with a wide range of specialist lenders who understand the pub sector.
Tailored Solutions: We’ll find the most suitable bridging loan based on your specific needs and circumstances.
Guidance and Support: We’ll guide you through the entire process, from application to completion.