Pub Finance

Traditionally the most cost effective way of buying a pub used to be to borrow the money directly from a brewery. The publican would borrow the money, at a low rate of interest,generally for a long term. In exchange, the publican would be contracted to buy all beer and often wine, spirits and mixers direct from the brewer or pub company at full price.

This is no longer an attractive option.

Consolidation and excess capacity within the brewing industry,coupled with a rising number of pub closures,has led to many brewers/pub companies changing their business model.

They have sold off their tied pubs and instead offer large discounts for volume purchases of their brands to pub chains and independent landlords. This change has encouraged many publicans to replace their brewery loans with commercial mortgages, in order to be able to buy beer at lower prices and hence to improve their margins.

Brewery finance is still available in some cases, but nowadays interest rates tend to be closer to commercial offerings, although some brewers nowadays offer a sliding scale where the rate of interest decreases if beer sales increase and certain predefined sales targets are reached, but in reality, the costs of brewery loans for publicans tend only to be omnicompetent. The licensed trade is increasingly turning to commercial mortgage providers.

Pubs have been hamstrung by the huge discounts given by their suppliers to their retained pubs and particularly to supermarkets, who often in fact re-sell at least than cost,but not given to them.

We can arrange to consolidate current debt, and arrange for working capital, going forward.

We can provide funding not only for freeholds but leaseholds, tenancies and franchises.

We can obtain loans from £10,000 upwards at attractive rates and without the "strings attached" by a brewery loan.

We can fund Tax/VAT liability.

We have staff with direct hands-on pub experience.

Buying a pub? Up to 100% can still be available.