LOANS for RETAILERS

We provide loans to shop and web based retailers.

• short term unsecured cash advances of £5,000 to £60,000
• leasing and hire purchase agreements secured on assets such as kitchen equipment, shop fittings, vehicles
• medium term loans from £200,000
• long term mortgages (commercial and residential) secured on property

Short Term Unsecured Loans
If your business can show cr/dr card sales of more than £50,000 in the past 12 months, we can provide a cash sum equivalent to one month’s average sales e.g if your annual card sales were, say, £480,000 then we can advance any amount between the £5,000 minimum and £40,000.

Repayments are a pre agreed fixed % of card sales in the following months, taken automatically by the card processor. So the amount you repay each month depends on your income each month (in a poor month you pay less, a good month you pay more) and the administration required of you is negligible. 

No collateral required, no audited accounts to be sent to underwriters, no upfront fees, no constraint on what you do with the money.

Fully endorsed by one of the UK banks, this is a quick and straightforward means of raising cash, especially for buying stock or for those sudden demands on cash flow, such as bank overdrafts being called in, unexpectedly high VAT or IR bills, bad debts, etc

 
Equipment Leasing
Spreading the cost of buying equipment, and fixtures and fittings, over two or three years can conserve your hard earned cash and reduce your tax liabilities.

The two common types of leasing attract the same rates of interest, are accounted for in the same way (as assets on your balance sheet) and the lease agreements can be for either a finance lease or a lease purchase.

Lease purchase is the same as domestic hire purchase, you pay all the vat upfront with the first instalment, then fixed monthly instalments for two or three years, after which title to the goods passes to you automatically.   

Finance lease differs in the vat payment, tax treatment and ownership.

• The vat is applied only to the monthly instalment and so is spread over the two or three years, not paid upfront
• You can claim all the monthly payments  - not just the interest element - against your taxable profits in the year
• Ownership is not automatic and involves a third party sale and buy back

Costs  - as a guideline, every £1000 of product (exc. vat) will lease for between  £32 and £38/month over 3 years , the exact cost depending on the type and cost of the asset being purchased, and the credit status of your business.

Assuming a “cost per thousand “(industry jargon) of £34, a £12,000 + vat purchase would lease for roughly 34 x 12 = £408/m over three years.

A finance lease would involve 36 equal monthly payments of £408 + vat.

A lease purchase profile would be a first payment of £408 + vat of £2100 (total £2508) followed by 35 payments of £408.

Which is best for you depends on your cash flow for the first payment and your accountant’s opinion on the tax implications for your specific business profile.

Security. The lease debt is secured on the assets being financed but, depending on the type of asset and on your business credit rating, further security may be required, such as directors’ guarantees or second charges over property.

Medium Term Loans
We work closely with a privately owned finance house who lend established and well managed businesses upwards of £200,000 for -

• working capital,  as an alternative to bank debt or EFG finance. The loan is fully repaid over three years or so.
• business development, interest only payments until the end of the term, when the original loan amount is repaid or converted into equity.   
• bridging loans, interest only payments until the end of term.

Mortgages – Long Term Secured Loans
We arrange commercial and domestic mortgages.

For commercial mortgages we have a private lender who can fund 100% of the freehold or leasehold valuation, providing the premises offer enough security. If they don’t, then we can take a second charge over residential property owned by the family to make up the shortfall. The application process takes only a few days.

Our bank mortgage lenders offer better rates of interest but they advance a maximum of 70% - often only 50% - of the valuation, leaving you to find the balance. We often raise the required deposit by re-mortgaging the applicant’s house.

For more information on any of these loans, please email warren.palmer@retailbusinessloans.co.uk and I’ll call you back to discuss

Contact Warren to discuss your requirements.