TYPES OF BORROWING AVAILABLE

This section will introduce you to the types of borrowing available, including information on business loans and the steps to consider when it comes to arranging business finance.

INFORMATION FROM MATT BRYANT AT OCL ACCOUNTANTS

Mortgage

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A mortgage is one of the most popular means of financing a Bed and Breakfast start up.

• Be wary of the risk of over-borrowing, do not overestimate the amount of business that you will attract during the year.

• Take into account any out of season periods. Already have a suitable property?

• You may need to re-mortgage it to obtain the cash for conversion or modification work.

• If this is the case, you will need to inform your current lender that you intend to run a B&B.

Business Loans

• In the past, businesses would have contacted a high street bank for a business loan.

• Whilst this option is still popular, there are now more lenders willing to lend finance.