Liberta Restaurant Ltd

Hospitality

Funds Requested

£35,000.00

Offered so far

£0.00

Loan term

60 MONTHS

Auction Closed

2014-12-28

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About the Business

Company Name: Liberta Restaurant Ltd Company Number: SC409618
Business Type: Hospitality Years Trading: 2-3 years
Business Location: BATHGATE

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

Personal Guarantee - PG from [name of director(s)]

Est. Equity: 0.00

2nd Charge on Residential Property - Second priority legal charge over personally-owned residential property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Narrative from rebuildingsociety regarding this application:

This loan application is different from all previous applications for funding as it shows three years of unprofitable accounts. However, given the level of security offered on the loan and the disclosures provided, the application has been listed for the lending community's consideration.

About the Business

We applied for finance with rebuildingsociety in August 2014, having received the support of the lenders, our loan was fully funded, however we encountered unforeseen difficulties with our bank in converting the initial agreement from Shawbrook to a formal offer of finance and were unable to complete on the loan. This offer has now been received to secure the rest of the funding. We were very disappointed to have been unable to move forward with the previous rebuildingsociety offer of finance and hope to again win the support of the lenders to aid in the purchase of the freehold interest in our restaurant.

We are a family owned Italian Restaurant that has been trading from leasehold premises since late 2011.

The directors of the business are Tahir and Mustafa Elshani, who each have external salaried jobs, with the restaurant being managed by Fikret Elshani.

Since opening we have seen a steady increase in trade, with a seasonal bias in sales over the Christmas period.

The business has considerable scope to expand, the issue we have being that as leaseholders we are somewhat reticent to invest further monies to improve the business, thus inflating the value of the trading premises.

At he current time we have c £70,000 of our own money invested in the restaurant.

Read more

Loan Offers

What is the loan for?

At the moment we currently lease the trading premises located at 4 Mid Street, Bathgate, West Lothian for £25,000 per annum.

An agreement has been reached to purchase the freehold interest in the restaurant for £200,000. We would like to take advantage of this offer as we will then replace the rent, which is dead money, to that of loan repayments, thus creating a long term asset for the business, which in turn will give us the confidence to grow the business, e.g. the creation of an external seating area.

In terms of the purchase price of we have £20,000 of our own money and an agreement to a commercial loan of £150,000. We are therefore seeking funding of £35,000 to make up the required deposit monies to allow the purchase to proceed.

Why consider investing?

Whilst acknowledging that the business has only been trading for a little under 3 years, we have proven our ability to service the rent at £25,000 per annum plus equipment finance of £8,500 per annum, this finance coming to an end in October of this year.

Therefore from a cash generation perspective, we do not consider serviceability a problem.

The overall financial situation is strengthened by way of our own investment into the business thus far, this linked into the directors external income streams.

Additionally, we are happy to provide a second charge over the restaurant premises, this as further evidence of our commitment to the business.

Security

This loan is to be secured by a 2nd Charge on the property being bought ( Valuation attached) as well as an All Assets Debenture and Personal Guarantees from the Directors

The directors combined net worth of £74k based on equity in a property with estimate value of £220k and equity of £77k.

DateAmountCapitalInterestReceived
28/01/2015£878.14£369.48£508.66
28/02/2015£878.14£374.85£503.29
28/03/2015£878.14£380.29£497.85
28/04/2015£878.14£385.82£492.32
28/05/2015£878.14£391.43£486.71
28/06/2015£878.14£397.12£481.02
28/07/2015£878.14£402.89£475.25
28/08/2015£878.14£408.74£469.40
28/09/2015£878.14£414.68£463.46
28/10/2015£878.14£420.71£457.43
28/11/2015£878.14£426.82£451.32
28/12/2015£878.14£433.03£445.11
28/01/2016£878.14£439.32£438.82
28/02/2016£878.14£445.71£432.43
28/03/2016£878.14£452.18£425.96
28/04/2016£878.14£458.75£419.39
28/05/2016£878.14£465.42£412.72
28/06/2016£878.14£472.19£405.95
28/07/2016£878.14£479.05£399.09
28/08/2016£878.14£486.01£392.13
28/09/2016£878.14£493.07£385.07
28/10/2016£878.14£500.24£377.90
28/11/2016£878.14£507.51£370.63
28/12/2016£878.14£514.89£363.25
28/01/2017£878.14£522.37£355.77
28/02/2017£878.14£529.96£348.18
28/03/2017£878.14£537.66£340.48
28/04/2017£878.14£545.48£332.66
28/05/2017£878.14£553.40£324.74
28/06/2017£878.14£561.45£316.69
28/07/2017£878.14£569.61£308.53
28/08/2017£878.14£577.89£300.25
28/09/2017£878.14£586.28£291.86
28/10/2017£878.14£594.80£283.34
28/11/2017£19,176.05£18,901.16£274.90
28/12/2017£0.00£0.00£0.00
28/01/2018£0.00£0.00£0.00
28/02/2018£0.00£0.00£0.00
28/03/2018£0.00£0.00£0.00
28/04/2018£0.00£0.00£0.00
28/05/2018£0.00£0.00£0.00
28/06/2018£0.00£0.00£0.00
28/07/2018£0.00£0.00£0.00
28/08/2018£0.00£0.00£0.00
28/09/2018£0.00£0.00£0.00
28/10/2018£0.00£0.00£0.00
28/11/2018£0.00£0.00£0.00
28/12/2018£0.00£0.00£0.00
28/01/2019£0.00£0.00£0.00
28/02/2019£0.00£0.00£0.00
28/03/2019£0.00£0.00£0.00
28/04/2019£0.00£0.00£0.00
28/05/2019£0.00£0.00£0.00
28/06/2019£0.00£0.00£0.00
28/07/2019£0.00£0.00£0.00
28/08/2019£0.00£0.00£0.00
28/09/2019£0.00£0.00£0.00
28/10/2019£0.00£0.00£0.00
28/11/2019£0.00£0.00£0.00
28/12/2019£0.00£0.00£0.00
Total:£35,000.26£14,032.56