Four good months
paying for twelve
Hospitality has an unusual cash flow shape, and it changes which business loans actually suit it. You are paid the moment you serve someone, so you have none of the late-payment problem other trades live with. What you have instead is a season, and fixed costs that carry on through the quiet half of it.
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Why hospitality is funded differently
- Your card machine is your strongest document
Most lenders read filed accounts. One on our panel reads your card settlements instead, which suits a business whose takings are healthy and whose accounts are a year out of date. How revenue-based funding works.
- Repayment that falls when trade falls
A fixed monthly payment is the wrong shape for a seasonal business. Taking an agreed share of card takings means January costs you less than July, which is the single most useful thing about it.
- Invoice finance will not help here
It lends against unpaid invoices from other businesses. If your customers pay at the till there is no ledger to lend against. Worth knowing before someone tries to sell it to you.
- Refits and kit are a different product
Funding an oven, a coffee machine or a full refit is asset finance rather than cash flow, and our sister company CW Asset Finance arranges that.
Questions from this sector
Can I get funding with no filed accounts?
Often yes, if the card takings are there. Our panel wants roughly £5,000 a month in card settlements as a starting point, and six months of trading. That is a lower bar than most term lenders set.
What if I have a bad winter after taking it?
With revenue-based funding the repayment falls with the takings, so a bad winter stretches the term rather than breaking the budget. The total you repay does not change.
Can I fund a second site?
Yes, though a site that does not exist yet is judged on the existing one plus your plan. Expect more questions and a personal guarantee.
Do you fund pubs and hotels as well as restaurants?
Yes. Anything that takes most of its money on card fits the same shape. Tenanted pubs can be harder because the lease terms matter, so tell us the arrangement early.
See what your takings support
Tell us your monthly card takings and we will tell you honestly what fits.
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