New start restaurant

New-start:

Term: 3 years
Amount: £400,000
Feature: interest-only term with security offered by family members

An excellent young chef, having gained experience working for others, decided to set up their own first restaurant.

They found high street premises, negotiated a 10-year lease, worked up a full restaurant layout and operating schematic for the business, and only required funding for the new enterprise. Their parents were happy to help them with the business idea and share in their journey, so became small shareholders and directors in the new company.

The requested loan facility, which fitted best with the business plan and cash flow projections, was a three-year, monthly payment, interest-only commercial loan of £400,000. At the end of the three-year term it was expected that the facility could either be repaid in full or refinanced on a fully-amortising basis over a further five years.