Hi, we are looking around for finance to buy the freehold of a pub. We will be owner-operators and would like to know if any lender will base the LVR against the property and pub as a going concern only or will they consider the stock if it forms part of the contract of sale, thanks?

Rob. Hi. These transactions are normally structured in a way that works best for all parties ie, you should start thinking about one loan for the property purchase, one for the goodwill and then potentially a line of credit to fund stock purchases etc.
you will need to have a well prepared business plan, have the devious trading results for at least three years, some experience in the industry and most important a realistic cash investment or additional security.
If you would like to chat more then please call
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN ((275 536)

Hi Rob,
I completely agree with Ken. It is all about structure and security. For example you may have a long term commercial property facility to purchase the freehold, a business loan for the leasehold and a working capital facility to purchase the stock and float etc.
If you speak to an experienced commercial specialist such as Shaun Massie at www.mobilelender.com.au he can provide some guidance that will allow your accountant to set up the businesses and trusts in the most appropriate way.
Get clear advice before you start and you are more likely to have a great future ahead of you
Best of luck
Scott