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When a London-based entertainment start-up sought financing to acquire its first commercial property, they faced significant challenges due to their new venture status. Read how Millbrook helped our client to secure a commercial property loan with commercial property finance that allowed them to achieve their dream of opening a live music and club venue in the heart of London.
Client Background
A New Live Music and Club Venue on London Embankment
A London-based hospitality firm with a strong track record in weddings and live music events was embarking on an exciting new venture—a live music and club venue on the prestigious London Embankment. This new business required significant funding to acquire its first premises, a 15-year lease, to turn their vision into reality.
The Challenge
Securing Finance Without Traditional Security
As a start-up, the client faced a common but significant challenge: securing funding without property as security. Traditional unsecured lenders were unwilling to assist due to the business’s early-stage status, making it difficult to obtain the required funding for the lease purchase.
Recognising the complexity of the case, the client approached Millbrook Business Finance for a solution.
The Solution
Leveraging Specialist Lenders for a Commercial Property Loan
Millbrook Business Finance worked closely with their panel of UK's best business lenders, leveraging expertise in complex commercial finance deals. Ray McAuley, Millbrook's senior business finance broker, took the lead in identifying a lender specialising in financing hospitality, leisure, and entertainment sector businesses, particularly those without property as security.
After reviewing the client’s extensive experience in the live entertainment sector, the lender was impressed and agreed to provide funding. Millbrook successfully secured a £450,000 loan for the lease purchase with the following structure:
- 12-month interest-only period to support initial cash flow
- Followed by a 36-month capital repayment loan
The only security required was life cover, a cross-company guarantee from the client’s other businesses, and a charge over the lease.
The Results
Flexible Finance, Strong Foundations for Growth
- £450,000 in funding secured for the client to purchase their first premises.
- A flexible loan structure designed to support the business’s early cash flow needs.
- The client is now well-positioned to launch their new live music and club venue, confident in their financial foundation.
Summary
Tailored Funding for a Growing Entertainment Business
Millbrook Business Finance delivered a tailored funding solution for a London-based start-up in the entertainment sector. By focusing on the client’s industry expertise and working with a specialist lender, we overcame the challenges of securing finance without traditional security.
The result is a fully funded, thriving new business on the London Embankment. This success highlights Millbrook’s ability to secure creative and flexible financial solutions for businesses with complex funding needs.
Ready to Secure Funding for Your Next Venture?
Millbrook specialise in helping businesses like yours access the funding they need to grow and thrive. Whether you’re a start-up or an established business, our tailored commercial property finance solutions are designed to meet your unique funding needs.
Get in touch today to discuss how we can support you in securing a business mortgage for your commercial property.
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