We recently worked with an existing client in the hospitality and catering sector who was looking for assistance with funding a new venture.

The client’s current trading business operated from a single leased site, successfully managed by his experienced hospitality team. A team who had run the venue for the past few years and had built a strong reputation, one which was based on exceptional food and service.

Following the continued success of the site and its proven offer, the operators FTSE listed landlord was looking to partner with the operator on an exciting expansion plan to take the brand national. The site owners had recognised the operators’ track record and was keen to work with them to roll out the concept across several new locations.

The initial requirement was to set up a central hub, and the client required our assistance to help fund the fit out. A new company was formed for the transaction, albeit supported by the client’s exiting business. The total funding sought was circa £400,000

As a broker, Wise Business Finance were delighted to support this exciting phase of growth and did so by arranging three separate asset finance facilities to assist with the fit-out. Funding was arranged for a range of assets to include refrigeration equipment, a ventilation system, kitchen equipment and a large mezzanine floor.

As is standard for this type of installation and schedule of works, some of the suppliers involved required stage payments at various intervals. We worked closely with the client to structure the funding in order that the cashflow and lump sum payment requirements worked for all parties. The client was able to make the initial supplier payments, after which we arranged a part sale and hire purchase (HP) back facility. This approach enabled us to work with the various lenders to refund the client’s upfront costs and pay the suppliers the remaining stage payments directly as they became due. Funding was agreed over varying term of three to five years. Cashflow is critical for any business when embarking on a large capital expenditure program, so it was important that the timings worked at each point of the installation.

The client was extremely complimentary about our support and communication throughout the process, noting how smoothly the funding was arranged and how well-informed he was at every stage.

If you are in the catering or hospitality sector and are looking at either a new venue or have a need to refurbish existing sites, the team at Wise Business Finance would love to talk to you. Get in touch for a no obligation discussion.

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