Funding secured for three times as many pub purchasers

12th July 2010, 3:15pm

Despite lending criteria remaining tight, banks are still keen to lend in the pub sector, according to Christie Finance, which tripled the number of pub buyers it secured funding for in the first half of the year, compared to the same period in 2009.

Further pressure on banks to free up funding and the introduction of the Enterprise Guarantee Finance scheme, coupled with professional advice, have further helped would-be buyers secure the finance needed to acquire freehold opportunities in the sector.

Christie Finance helped to secure funding for 24 pub buyers in the first six months of this year, compared to eight in the first half of 2009.

Although banks have seemingly favoured lending to experienced operators, Christie Finance has also aided a number of first-time buyers over the last six months in acquiring their first pub venture.

At the end of March, Christie Finance helped first-time operator, Mr Damon Godding, to purchase The Duck Inn public house in Newney Green, Essex, for an undisclosed sum. More recently, the company helped to secure a competitive funding package for first-time buyer, the Funfair Brewery Company, to acquire The Chequers Inn in Elston, near Nottingham. Both pubs were acquired through Christie Finance's sister company Christie + Co.

David Grant, Head of Business Mortgages at Christie Finance, said: "It's encouraging for the whole licensed trade market to see such an increase in activity and particularly for first-time buyers, who have had such difficulty getting into business of late. Hopefully, this indicates that the banks are 'open for business' at last."

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