I have recently posted on here about opening up an indoor five-a-side artificial turf football centre. It will hopefully have six courts (about 20mx30m each). I have been looking at leasing an industrial unit converting it, however I am leaning more towards out right purchasing of a unit about 50,000 square feet with sufficient eaves height of 10 or more metres. This is going to be very expensive.
The Major stumbling block is the fact that I have a great idea a well constructed plan, but no money…I’m absolutely skint!
I have seen a few companies on the ‘net advertising business loans up to 100% up to £6.5m. I would need about £2.5 – £3 million to purchase suitable premises set up the business with the unit fully kitted out ready to run. Does anyone know if any of these companies are reputable or if they would even consider a venture like this, even with the purchased premises buisness laid against the loan as insurance against anything going wrong?
The large amount of the loan will be mostly to purchase the premises, only about £150,000 – £200,000 will be needed to set up the actual converstion of the site and get the courts/changing areas up and running.
Hopefully someone out there knows of, or works for, a company that maybe able to help me in this predicament, the business itself would be lucrative enough to pay for the loan or a longer period of 25 years initially, but maybe less once fully established and well known.
I thank you in advance,
Alan Tait
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I wouldn’t be able to help you but I wish you the best of luck in your venture!
If you’ve seen them on the net offering up to £6.5m – who cares if they are reputable or not. If you’ve got your money, they’re the ones who are hoping that you are reputable!
But seriously, I would expect that any company would only let you borrown a serious amount of money like this if you already own a business or have lots of assets you could use as some kind of insurance.
To be honest, I dont think you stand a hope in hell.
You have no chance – we all have fantastic ideas, but even if you had proof of concept nobody would lend you this money without a track record/ or as a finance company would I lend. What you need to do is start off smaller and work with a co-financer. You really need to work up a very good business plan though and I would suggest if you are looking for that amount of money you should try setting it up as a part finance part social enterprise/ charity venture and approaching companies like Esmee Fairbanks for a grant to set it up as such. There are thousands of grant giving organisations that might help in this case; but anything else is pie in the sky I am afraid.
If you had a property to use as collateral you might get up to 2 times the value of it if you have a very good business plan – nothing else, unless you approach capital venture companies, but I warn you from my experience they are after pre-existing ventures to take over at the right time.
Good luck.
I doubt anyone will invest in this as the risks are too great and if they did the repayments would be prohibitive.
You can get a commercial mortgage on the property so long as you have a convincing business plan showing how the repayments will be made but you will need a deposit for that, probably 20%. You will also need working capital as you point out.
I think i would be looking for a partner rather than investor. someone with money, expertise, and hopefully someone who can share your dream.
With a partner you will not be in sole charge but maybe its better to be half in charge of something that completely in charge of nothing.
It sounds like this is something that is not just a business idea but a passion. I hope it works out.
approach any bank you care to choose and have chat with them.
Hi,
I second the suggestion of one of the other respondants that you include a social element to your business as you may be able to attract government and charitable funding, as well as doing something positive in your community.
I have no experience in assessing business ideas but I would think that you’d need a watertight business plan to attract a relatively large amount of money like £3m. Also, remember that you’ll probably need to service this loan from the start when your revenue is low.
I hope that all goes well for you!