Running a successful restaurant isn’t an easy game. Operating in a both highly regulated and competitive industry, restaurateurs often face high startup costs (estimated in the hundreds of thousands of pounds), as well as marketing and branding challenges.
A loan from Spotcap can help smooth a restaurateur’s journey. Fully unsecured and quickly available, our funds can help you cover leasing costs, insurance, licensing fees, kitchen equipment and inventory, as well as boost your working capital.
For illustrative purposes only. The example shown above is based on 1.4% average monthly interest rate and 3% arrangement fee. The APR (annual percentage rate) is 22.80%, which includes both interest and fee. The total payable amount is . This amount consists of principle, interest and fee. We base our decisions on several criteria and loans can only be granted to borrowers who can afford repayments. For more information about responsible lending click here or contact us directly.
What types of finance are available to the restaurant industry?
Generally speaking, three forms of finance are popular with restaurateurs: equipment loans, working capital loans and inventory financing. Equipment loans are built to help create the infrastructure of a restaurant, or to upgrade existing equipment. These loans may cover up to 100% of the equipment’s cost. Due to the size of the loan, equipment financing tends to be a longer term arrangement. A lender may also ask to take existing equipment or assets to secure the loan.
Inventory finance is an arrangement in which the borrower uses their inventory as collateral. The borrower can use the funds to purchase more inventory and stock, therefore meeting demand and driving sales. The lender uses the newly purchased inventory as collateral.
The use-cases of working capital loans are less specific. Usually shorter term solutions, working capital solutions are used cash injections to keep the daily mechanics of the restaurant in motion.