What Finance Is Available For Hospitality Business Such As Pubs and Restaurants?
There’s no denying that the last 2 years have been extremely difficult for the hospitality sector and with the impact of COVID still reverberating across the industry today, we know that many businesses are struggling to stay on their feet.
While hospitality is not under any current restrictions in England, the fear of the new variant has resulted in mass cancellations for hospitality venues, and between that and increased levels of staff sickness, many businesses are struggling to stay open.
Thankfully there are a number of products available to hospitality businesses which can be a great way to boost your cashflow to get through these difficult times.
What products are available?
- Merchant cash advance – A loan based on how much your business takes through card transactions, which is then paid back through taking a small percentage of future card payments.
- Asset finance – Used to spread the cost of expensive purchases over a longer time.
- Leasing finance – can be used to finance new equipment or refinance existing assets such as fixtures and fittings.
- Business loans – Secured or unsecured, a business loan is usually the simplest form of finance.
- Commercial mortgages – The same as private mortgages, a long-term loan used to buy a property.
- Structured finance: – where the directors use their homes to provide additional security for loans to their business. Especially where there is limited se urity available.
Hospitality finance can help with
- Buying expensive equipment
- Seasonal dips in trade
- Licensing costs