Business Finance Solutions
We help our clients to obtain the ideal business loan or funding option from £500 to £500,000 to assist in growing their business, even if they have been refused by mainstream providers, such as high street banks.
Expert accounting and tax consultancy
We pride ourselves on making the time to offer our clients a friendly listening ear and professional accounting services. Our experience shows us that people who truly understand their numbers feel more relaxed, more empowered, and better able to plan the future growth of their business.
Budget Mastermind is very excited and proud to help pave the way to your financial health. Our expertise and passion lies in our mission to help small businesses grow and succeed, with greater access to low-cost capital – their biggest challenge.
We provide our clients with specialist knowledge, advice and free consultancy services. We assist our clients in obtaining the funding support they need for their business and development projects, and often we get involved when the client’s own bank has rejected to support or will not help to the extent that the client needs. More >>
Frequently Asked Questions
CAN I BORROW AGAINST THE 'GOODWILL' OF A BUSINESS AND EQUIPMENT, FIXTURES AND FITTINGS?
In general terms yes. If you are buying a business trading from freehold premises we will obtain a professional report to verify the overall value of the business’ goodwill etc. which is sometimes referred to as ‘market value’ or MV1. Subject to satisfactory confirmation it is usually possible to secure an advance against the overall business valuation. Where the purchase of a trading business also includes machinery, vehicles equipment, stock etc. it is generally more appropriate to structure a separate loan to acquire these assets on a short-term lease or stock finance arrangement.
WHAT DOES THE TERM ' MORTGAGE AFFORDABILITY' MEAN?
When an underwriter assesses a mortgage application the key criteria is the applicant’s ability to afford the loan repayments – sometimes also referred to as a ‘stress test’. Many mortgages will offer an ‘easy start’ period on interest only terms, but most mortgage lenders wish to see both capital and interest repaid thereafter. In assessing your ability to repay the loan the underwriter will look at business income / profits via any accounts held and any other sources of confirmed income that you have. In situations where you are renting business premises and wish to purchase a freehold property (perhaps as a sitting tenant) then the rent you pay will be assessed as an ‘add back’ when looking at the overall position.
WHAT CHARGES ARE ASSOCIATED WITH SETTING UP A COMMERCIAL OR DEVELOPMENT MORTGAGE?
The applicant will have no fees to pay in order to secure an ‘agreement in principle’ (AIP) offer from the mortgage provider – we offer this service free of charge. Once the AIP is accepted by the client it will be necessary to schedule and pay for any valuation report(s) needed by the underwriter. The cost of these will vary depending on the size and scope of the project but on commercial schemes we normally advise to budget £2 per £1,000 of property value. After the valuation reports confirm a positive and viable loan proposition the lender will issue the formal offer subject to legal due diligence. At which point a non-refundable commitment fee may be payable by the client to cover underwriting costs – this is generally deducted from the loan set up fees. Some lenders will require their own legal costs to be covered by the client, but it may be possible for the clients / lenders solicitor to represent both parties. In addition to the interest charged on the mortgage or development loan, there will generally be a set up fee of between 1% and 3% of the loan.
WHAT DOES THE TERM ERC MEAN?
ERC stands for ‘Early Repayment Charges’ – generally applied on longer term commercial mortgages (to protect the lenders anticipated margin on the deployment of the funds) if the loan is redeemed in the early years. Many lenders will charge ERC’s up to a three or five year point in the loan usually on a reducing scale but these can be as high as 5% of the mortgage amount if a loan is repaid in year 1.
We have over 20 years of experience providing expert financial advice.
A young, enthusiastic team of advisers are always here to help.
Our financial specialists ensure you get the optimum results.
Request a Call Back
Would you like to speak to one of our financial advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
For Businesses: Do you have questions about how we can help your company? Send us an email and we’ll get in touch shortly, or phone +44 (0) 207 153 1007 between 10 am and 6 pm Monday to Friday — we would be delighted to speak.