Sector Definition
A wide range of commercial catering establishments serving meals to the general public.
Restaurants will generally specialise in a particular type of food and the performance in this sector follows trends in consumer spending. Failure rates are typically high - industry sources estimates that only 1 in 20 ultimately survive.
Commercial Mortgage Overview
The applicant should have a high business acumen in the sector, with general management skills associated with employee retention and customer service.
A commercial mortgage contribution is usually from 50% for a start up venture, 40% for a good quality business, and 30% for an established business of excellent quality. Period of repayment is normally up to 15 years.
Documents Required
- Existing Financial Information of outlet, Profit & Loss Accounts, Balance Sheets, etc (min 3 years).
- If start-up, full Business Plan and financial projections covering the first 3 years.
- Bank statements.
*This guide is for information purposes only. You should seek professional advice on your commercial mortgage requirement from a commercial mortgage broker that holds a consumer credit licence.
