£970k Guest House Acquisition 🛎️
As our economy is starting to come back to life after successive lockdowns our case study this week looks at a boutique guesthouse in a picturesque village in Somerset.
Supporting UK businesses when it matters the most.
Our borrowers wanted to expand their offering with the acquisition of a 35-bed guesthouse in a beautiful location. However, despite the fact that they are experienced property investors, have built up a portfolio of holiday lets and due to the recent boom in staycations had a strong summer last year and are fully booked for the year ahead they still struggled to source finance within mainstream lending because of the pandemic.
At Ortus, we’ve been proud of the fact that even in the face of the struggles of the past year we have still continued to lend in a sensible way and this case was no different. We always give priority to the individual and therefore look at the borrower, their experience, analyse their business plan and take a pragmatic view. With this borrower, there was a strong business plan and so bridging was the perfect solution.
Once the loan was secured, it enabled our borrower the all-important time to prepare for the ongoing summer season and thankfully reservations are very encouraging for the season ahead. With a 24-month loan, they will have the opportunity to establish trade and upon expiry, they will be in a position to present a successful trading history to support their forecasts and ultimately demonstrate repayment capacity for a term loan.