Case Study – Hospitality Financing

Hospitality Catering and Fit-Out Finance

Company —
Hospitality Service
Business Type —
Catering and Hospitality
Requirement —
Fit-out and Kitchen Equipment
Solution —
Equipment Finance

Increase Your Hospitality Offering With Catering and Fit-Out Finance

See how finance invigorates a business with a strong reputation for culinary excellence and impeccable service, allowing them to cater to a wide range of clients, including hotels, pubs, weddings, corporate events, and more.

The Challenge

As the business aimed to expand its services and cater to larger events and venues, it faced the challenge of kitting out their new site with a full kitchen and catering services fit-out. This endeavour included acquiring advanced equipment like hot cupboards, modular cooking ranges, and extraction canopy kits, all of which required significant upfront investment. Securing finance was essential to fund these essential equipment purchases and overcome the financial burden.

Investing in Advanced Equipment

With the support of Portman Finance Group, the business invested in premium equipment with which to equip their new site. The financed equipment included the hot cupboards, a modular cooking facility, and the extraction canopy kits. Through equipment finance, these state-of-the-art additions streamlined their kitchen operations, enabling the company to cater to larger events with ease and efficiency.

Hospitality facilities

Benefits and Challenges in the Catering, Hospitality, and Pubs Industry

Benefits:

  1. Enhanced Service Capability: Investing in advanced equipment allows catering and hospitality businesses to expand their service offerings, accommodating larger events and diverse clientele.

  2. Operational Efficiency: Modern equipment improves kitchen workflow, reduces waiting times, and enhances the overall dining experience for customers.

  3. Customer Satisfaction: High-quality equipment enables businesses to deliver consistent, delicious, and visually appealing dishes that leave a lasting impression on customers.

  4. Competitive Advantage: Hospitality businesses that invest in new equipment gain a competitive edge, positioning themselves as industry leaders offering top-notch services.

Challenges:

  1. Capital Intensive: Setting up a fully functional kitchen and catering fit-out involves significant upfront costs, which can strain a business’s finances.

  2. Seasonal Demand: The hospitality industry experiences fluctuating demand, and investing in new equipment requires careful planning to align with seasonal trends.

Solving Challenges with Finance

Hospitality and catering equipment finance, offered through Portman, presents tailored solutions to overcome the financial challenges faced by businesses in the industry. Financing allows businesses to spread the cost of equipment acquisition over time, preserving working capital for other business needs. Flexible repayment options and seasonal payment plans align with the seasonal demand fluctuations, providing a feasible solution to address financial challenges.

Hospitality food service

Conclusion

By leveraging the benefits of finance, the business successfully equipped their new site with advanced catering and kitchen equipment, enhancing their service capabilities and customer experience.

The strategic use of hospitality and catering equipment finance from Portman Finance Group, allowed them to overcome financial barriers and invest in state-of-the-art equipment that positioned them favourably in the sector space.

Moreover, other hospitality businesses, including pubs and hotels, can also capitalise on the benefits of investing in new equipment or fit-outs to elevate their services, attract more customers, and drive business growth in the competitive hospitality sector.

If you’re looking to improve guest experiences, improve your food and beverage or customer service offering, equipment finance solutions through Portman could help.

Fine dining hospitality service

Partner with Portman, for a successful future

There are plenty of finance options out there for you, deciding which is right for you will take time and consideration. But why should you choose these financing options from Portman?

At Portman Finance Group we are focused on serving the needs of you and your businesses, and have been doing so for thousands of other businesses since 2007, raising over £1 billion in funding for UK SMEs. 

We take the time to truly understand your business and what you need, ensuring we secure the right funding for you. As both a broker and a lender, we can also offer financial options that others cannot. We promise you will have one point of contact from start to end, providing you solutions quickly, sometimes within hours.

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Hire Purchase

Hire purchase usually involves paying the VAT and a deposit up-front. Fixed monthly repayments are then made, affected by whether you pay off the entire loan over the term or chose a final balloon payment. The final option to purchase is guaranteed for a nominal fee, transferring ownership of the asset to the customer.

Hire purchase is well-suited for situations where a company definitely wants to own the item at the end of the term, often where the asset has a significant usable lifespan, a high residual value and will not need to be upgraded.

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Lease Finance

Equipment leasing allows a business to acquire hard or soft assets without the upfront costs associated with large purchases. A lender purchases the item, the business then leases it through fixed monthly payments over an agreed term.

Typically, asset finance is provided for high value ‘hard’ assets such as machinery, equipment, or vehicles, but Portman also arranges asset finance for ‘soft’ assets such as IT, fitness, catering, or vending equipment, as well as premises fit-outs, furniture or even air-conditioning.

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Business Loans

Business loans are a way of borrowing money, which is repaid in monthly instalments, including interest, over an agreed term. Business loans are a common way to help smooth out cashflow fluctuations and take opportunities where otherwise they could be missed due to a lack of working capital.

Business loans can be secured or unsecured. Portman typically provides unsecured loans which can be more flexible and do not require collateral but are likely to require a personal guarantee. Secured loans are tied to an asset which the lender can claim ownership of if repayments are not made, these may be used in equipment refinance deals.

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Start Up Loans

New businesses often need an injection of finance to get them off the ground. Asset finance for new businesses allows you to focus on running your company and bringing in customers, confident that you have the equipment, vehicle or stock you need without the large initial outlay.

Using finance for your equipment means that you preserve the credit card or overdraft for contingency and operating expenses when the unexpected happens.

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Equipment Refinance

If you recently bought a high-value item outright but would now prefer to have financed it, we can help with a sale-and-lease-back agreement. If the item is less than 3m old, give us a copy of the invoice and we will calculate the current value. After a few checks and acceptance of the term and monthly repayments, we can give you the cash equivalent of the invoice to put back into the business. You’ll then make fixed monthly payments including interest, whilst your asset earns you money.

If your business owns high value assets that are not currently on finance, subject to a valuation, it is also possible to use them as security for a loan, with lenders offering a cash loan up to a % of the asset’s value.

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Recovery Loans

Recovery Loans offer an excellent way of making sure your business gets back on its feet after the long-term effects of the pandemic and subsequent supply chain disruption. Businesses with turnovers up to £45m, including those who have previously benefited from the government’s CBILS, BBL or RLS, can apply.

Recovery Loans can be used for any legitimate business purpose or simply to provide cashflow. Rates are capped and the government continues to guarantee 70% of the outstanding balance, giving added security for lenders who are now able to consider finance for businesses who may have previously found it difficult to obtain.

Up to £2m can be borrowed on terms from 2 to 6 years. Your personal private residence cannot be taken as security.

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