no authorised advisors (commercial brokers) with bank credibility still operating AFAIK. Ulster & NIB are reluctant to look at propositions from those banked elsewhere. AIB appears to be the only realistic alternative. Pick a large branch if you have an option as they are more likely to have a higher local lending discretion.
BoI refused me a loan to buy my business premises
- Thread starter siofra1
- Start date
Really? I wonder do the high integrity bankers see the irony.
Commercial
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I find the repsonse to your application very strange. I am currently applying for a commercial premises loan facility for a client of mine. BOI have indicated the following for a rural West of Ireland case,
1. Up to 70% LTV
2. A good repayment record will stand to you.
3. A 15 year term stressed at 8%
I am also dealing with another Bank who are open to providing finance. However, this is at early stages.
They may feel that you are overexposed with the other properties in your portfolio, but it is hard to review the whole case without having the full picture
1. Up to 70% LTV
2. A good repayment record will stand to you.
3. A 15 year term stressed at 8%
I am also dealing with another Bank who are open to providing finance. However, this is at early stages.
They may feel that you are overexposed with the other properties in your portfolio, but it is hard to review the whole case without having the full picture
"Commercial" I'm also very surprised at this response and suspect that it may be more to do with the Bank Official than the Bank's official stance. It goes against everything else that I have heard re BoI's policy.
OP did you actually deal with the manager? was this a small local office?
OP did you actually deal with the manager? was this a small local office?
Commercial
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I suspect a bank official lacking motivation for one reason or another.
Also, there maybe other factors
Also, there maybe other factors
Brendan Burgess
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Hi Siofra
Would you mind summarising the three existing properties and mortgages you have to give us an overall picture. Value of property, underlying mortgage and interest rate. Also the value of the property you want to buy and the amount of cash you have.
Brendan
In this case it seems there is no real reason for me to be so worried about my future credit rating as no one will lend anyway. This sort of thing will just stall growth in all sectors
1 year later
I started this thread about a year ago and for the first time I had really hit a wall in my career.
I completed the purchase of my premises mid last year and now can say things are looking so much rosier.
After going back to knock on the bank officials door and make my case why BOI should lend to me, I got my loan at 70% LTV over 15 years.
After a little more persuasion, and again putting my personal and business profile on written paper whilst stating all the reasons why BOI have to lend to me it was a matter of weeks and I was in business.
In response to Brendan asking what my underlying debts/mortgages are
Personal debt (never missed a payment never restructured) €945K
Company debt (never missed a payment never restructured) €1.75million
Personal guarantees (close to what the national debt is)
Anyway the banks are actually lending. Just a little extra persuasion is all that's needed.
I started this thread about a year ago and for the first time I had really hit a wall in my career.
I completed the purchase of my premises mid last year and now can say things are looking so much rosier.
After going back to knock on the bank officials door and make my case why BOI should lend to me, I got my loan at 70% LTV over 15 years.
After a little more persuasion, and again putting my personal and business profile on written paper whilst stating all the reasons why BOI have to lend to me it was a matter of weeks and I was in business.
In response to Brendan asking what my underlying debts/mortgages are
Personal debt (never missed a payment never restructured) €945K
Company debt (never missed a payment never restructured) €1.75million
Personal guarantees (close to what the national debt is)
Anyway the banks are actually lending. Just a little extra persuasion is all that's needed.
Brendan Burgess
Founder
- Messages
- 52,269
Hi Siofra
That is great news.
I am surprised that the bank did not ask for this at the very start. You were asked for it on Askaboutmoney pretty early on. A loan decision cannot be made in isolation from the rest of your finances.
But anyway, it's great to hear a business doing well. We tend to hear the sad stories.
That is great news.
I am surprised that the bank did not ask for this at the very start. You were asked for it on Askaboutmoney pretty early on. A loan decision cannot be made in isolation from the rest of your finances.
But anyway, it's great to hear a business doing well. We tend to hear the sad stories.
this may not belong right here but I think its somewhat relevant:
A local business I frequent has intimated he too is in a similar predicament. I mentioned then to him I had cash looking for investment opportunity.
He has suggested I loan him 400,000 and in return he will pay me 100,000 per year for five years.
I can calculate interest rates and annuities and it seems ok-ish.
Is anyone else doing "this sort of thing"?
Does this make sense?
What about stuff like moneylender's licence? (wife freaking at that)
But maybe I will just buy something to let. Thoughts?
A local business I frequent has intimated he too is in a similar predicament. I mentioned then to him I had cash looking for investment opportunity.
He has suggested I loan him 400,000 and in return he will pay me 100,000 per year for five years.
I can calculate interest rates and annuities and it seems ok-ish.
Is anyone else doing "this sort of thing"?
Does this make sense?
What about stuff like moneylender's licence? (wife freaking at that)
But maybe I will just buy something to let. Thoughts?
What you are doing is lending money.
You are not in the ambit of moneylenders licence etc
This would be contract law. You could do this orally - but that would not be what I do.
Are you alone. No.
- If you know the business
- have seen the cash flow estimates
- can secure your borrowing on assets (you don't say the structure) but lets say its
a company - you would essentially structure this as a debenture
- what covenants and obligations you would require is a matter for you.
The buy to let - what yield would you get?
What risk would you have?
Compare the two..
You are not in the ambit of moneylenders licence etc
This would be contract law. You could do this orally - but that would not be what I do.
Are you alone. No.
- If you know the business
- have seen the cash flow estimates
- can secure your borrowing on assets (you don't say the structure) but lets say its
a company - you would essentially structure this as a debenture
- what covenants and obligations you would require is a matter for you.
The buy to let - what yield would you get?
What risk would you have?
Compare the two..