Business sales at Ernest Wilsons continue on a pace and along with that the days seem to be one long conversation about finance! Which is great! Lloyds TSB Commercial certainly seem to have a renewed appetite for Enterprise Guarantee Scheme (EFG) Loan funding and the Government’s Funding for Lending Scheme is helping bring EFG pricing right down to that of conventional secured loans. Plus I understand the 1.5% arrangement fee is waived for all applications before the 1st March 2013 – and quite a few are taking advantage of that! Certainly it is pleasing to see an increasing number of loans being approved for Business purchase.
This last week a 21 year old young man was appointed as a Subpostmaster in a nearby Sub Post Office that is to be transferred from the current scale payment contract to a new “Local” contract – well done to him. He used our “Buying a Sub Post Office Support Service” which put him in the best position to present most professionally at the Post Office interview which for him lasted 2 hours! It is such a satisfying conversation to have when the call comes in “I got it!” A customer showed me recently a Fixed Rate Business Loan agreement which appeared to have an “embedded derivative” written into it (rather than a separate hedging agreement covered by MiFID)– certainly the advised breakage fees were astronomical and lent weight to this interpretation – I wonder how many other of the Banks business customers think they have a “bob standard” fixed rate business loan but it actually incorporates breakage clauses like this which are linked to prevailing market rates! They will certainly get a shock when they come to repay the loan whilst base rates are so low – as this client certainly did. I notice from a simple internet search that there is a growing movement highlighting this issue.
If you have any questions or need assistance with buying a Sub Post Office or indeed with the raising of finance for any business purchase do not hesitate to telephone me on 0113 238 2900 or email me at martin.humberstone@ernest-wilson.co.uk
The New Year has brought a flurry of requests from all over the country for assistance with the Sub Post Office application process which includes a Business Plan in the Post Office bespoke format and a presentation to be given at the Post Office interview. I have been inundated and it is very heartening to see such a strong start to 2013. I am planning a seminar "So you want to be a SubPostmaster, come and learn all about it" which will help answer all the questions that many have about the sector, the Company, the application process, finance etc - if you would be interested in attending email me and let me know!
Meanwhile we have fixed the 7th March 2013 as the date for our next and fourth seminar "Thinking about buying a business? - Learn How!". These have been ever so well received with excellent feedback and all have been fully subscribed. It will be in Leeds again and costs just £85 plus VAT for one and £160 plus VAT for a couple.Includes external professional speakers. Again email me if you would like details.
If you need assistance with buying a Sub Post Office or indeed with the raising of finance generally do not hesitate to telephone me on 0113 238 2900 or email me at martin.humberstone@ernest-wilson.co.uk
