Faced with tough economic challenges and less-than-favourable debt terms, the owner of a family-run pub sought the help of Millbrook Business Finance to turn his situation around using Merchant Cash Advance for the hospitality sector.
Jonathan, a seasoned professional in the hospitality industry, manages a family-run gastro-pub in Warwickshire. With several years of experience, he climbed the ranks to management and eventually took the helm of his own pubs. Established in 2019, the family business faced the brunt of the Covid impact but is resiliently bouncing back, poised for a prosperous future.
Jonathan encountered cash flow challenges, due to seasonal fluctuations, compounded by the increased prices of stock due to UK alcohol duty changes on wine and spirits. While a debt consolidation loan initially helped cover short-term debts, the fixed monthly payments became a headache during less bustling trading periods.
To address the cash flow fluctuations, Philip Booth, a business finance specialist at Millbrook Business Finance, proposed a Merchant Cash Advance tailored to the pub's daily takings. Unlike fixed monthly payments, this approach offered flexibility, aligning repayments with the business's ebb and flow. Jonathan secured a £100k Merchant Cash Advance with a straightforward application process, no fixed term, and payments agreed as a percentage of card terminal transactions.
The £100k Merchant Cash Advance was fully approved, empowering Jonathan to consolidate his business debts into manageable repayments and smooth out cash flow uncertainties, freeing him up to focus on growth opportunities for the future.
Jonathan's family-run gastro-pub not only weathered the financial storms but emerged with a robust financial strategy, setting the stage for continued success in the ever-evolving hospitality landscape.
In facing the challenges of cash flow fluctuations and increased costs due to the cost-of-living crisis, Jonathan sought the expertise of Millbrook Business Finance. Facing the strain of fixed monthly payments on a debt consolidation loan during quieter trading periods, Jonathan opted for a Merchant Cash Advance specifically for the hospitality sector.
This tailored merchant loan not only secured £100k in funds but also provided the flexibility needed for repayments linked to daily card terminal takings. The impact was significant, reducing monthly outgoings, saving money, and positively influencing Jonathan’s credit score. This strategic financial move empowered the family-run gastro-pub to overcome financial uncertainties, reinvest in the business, and set a solid foundation for future success.
Get in touch to discuss your business financing needs with one of our experts. Alternatively, apply for business finance with Millbrook now for a tailored financing solution that can help you keep your cash flow healthy and navigate times of uncertainty.