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We find the best business loans for pubs

If you're a pub owner, you'll no doubt have noticed that your income has been dropping considerably in the past few years thanks to the ongoing recession. The simple fact is that many people are now choosing to stay in at weekends, or to have a few drinks in their home before hitting the town, marginalising the potential profits to be had for pub owners.

This means that pubs now have to think outside the box, and offer their patrons something they can't get elsewhere. While we lack the creative flair to be able to help you in that regard, we can offer some tips on finding the working capital to make your renovations and changes happen.

There are many financial institutions only happy to offer business loans to pubs. Regardless of the current economic issues, they are fully aware that pubs are still one of the main focal points of modern society, and are unlikely to go out of fashion at any point in the next century of two.

This means that pub owners are able to avail of slightly more reasonable rates than many other business owners. Many lenders have specific bridging loans to enable pub owners to make the necessary renovations and changes to bring their customers flocking back in their droves.

Typical rates for these loans tend to be sums between £200,000 and£5,000,000 (or more in some cases, although the chances of being a successful applicant for a loan of that magnitude without being able to prove that you'll make exceptional use of the money are slim to none) up to an LTV (loan to value) of 85% for a period of 3 to 30 years.

So if you're considering carrying out some work on your pub, it might be worth popping into your bank and having a chat with the person in charge of business loans, you might be surprised with the reception you get.

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