Member Article

£315k finance helps hospitality entrepreneur purchase North Yorkshire pub

A North Yorkshire hospitality entrepreneur, Cameron Reid, was able to buy his own pub after a £315k loan from Shawbrook Bank.

Cameron Reid has worked in the leisure industry for the last 20 years, managing pubs, restaurants and hotels. He and his wife had been running the New Inn pub in Tholthorpe, North Yorkshire, for four years when the opportunity arose to purchase the freehold from its owner Punch Taverns.

Cameron contacted independent broker Tom Thompson from Acorn Commercial Finance, who introduced him to Shawbrook Bank who was able to offer Cameron a £315k loan to purchase the property.

Cameron approached his business bank for a loan, but it soon became clear it wasn’t going to be possible.

He said: “I went to see my business bank manager to discuss getting a loan, but it soon became obvious that the bank wasn’t interested”

“They didn’t say no outright, but I was told I would need a very large deposit and there was no sense of commitment or desire to progress my enquiry.”

“If we had not been able to secure a loan from Shawbrook Bank, Punch Taverns would have sold the freehold to another buyer. This would have led to a new rental agreement and quite possibly higher rental prices, which would have had an impact on our income in the long term. We may even have had to move from the pub completely.

“I can understand why a bank might be reluctant to offer a loan to a struggling business with serious cash flow issues. What frustrates me is when banks refuse to help a strong business that needs investment to expand and develop.

“At no point did I feel we had been judged on the merits and strengths of our individual business – as a pub we were simply placed under the same umbrella and turned down.”

“Now that we own the freehold there’s much more potential for financial gain. We’re thinking about future projects and how we can develop the pub over the next couple of years. The future feels much brighter which has a positive effect on the day-to-day running of the business.

“We are the only pub in Tholthorpe, which is a small village. Being able to develop the pub will also have a positive impact on the people who live in the village – a good pub adds value to nearby properties, and it makes the area a nicer place to live.

“Tholthorpe is growing, and our loan from Shawbrook means we can now expand and develop with the village and make the most of the business opportunities available to us.”

This was posted in Bdaily's Members' News section by Clare Burnett .