Client: Local small business
Facility: £493,500 commercial mortgage
Purpose: Farm purchase
Client background
Our client, a local company that had been trading for about ten years, wanted to buy a 15-acre farm in the Peak District to run the business from. The owner planned to live on the farm with his family and use the move to diversify the business into several new ventures.
His plans included adding a caravan and motorhome micro-site, native-breed beef cattle for local wholesale and direct box sales, seasoned hardwood sales, tree surgery, agricultural contracting including groundworks and drainage, and DIY livery for people bringing their horse on holiday, alongside office and workshop space for the existing business.
Challenge
Finance was hard to secure. A large proportion of the funding was going towards the home itself, which put off most commercial lenders. Also, the existing business alone didn’t generate enough income to meet most lenders’ debt service requirements.
Solution
We reworked the business plan and found a lender prepared to look at the whole picture, including the future earning potential of the additional enterprises the client planned to build on the site.
Outcome
Full funding was secured. The client and his family have now purchased the farm and moved in, with the diversified business underway.
Client testimonial
“Thanks for everything and making our dream come true. The views are fantastic. It was well worth waiting for, and it’s everything we wanted.“
