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Financing FOR THE HOSPITALITY INDUSTRY

busy bar with lots of people and pendant lights

As the weather begins to warm up and we edge closer to the end of the year, our friends in the hospitality industry start to feel a resurgence after winter hibernation. 

 

Restaurants, cafes and bars see the benefits of warmer weather with more people venturing out, and of course the many end of year celebrations that take place.

With the prospect of more business coming their way, some hospitality business owners may have the need to seek finance to help them to prepare for the silly season. 

Unique challenges facing hospitality

Given the unique challenges facing the industry, some hospitality operators can find financing hard to come by with traditional banks or lenders due to the nature of their operations.

It’s not all doom and gloom though – at Alegra we love working with businesses within the hospitality space.  We take the time to understand what you do, and we have access to lenders who not only understand your position, but also how your industry works.

 

What can you finance in hospitality?

Hospitality business owners that have cafes, restaurants or bars may need to access commercial finance to help them position themselves for growth.  This may mean they need finance for:

  • Kitchen fit outs or equipment
  • Tables, chairs, or stools
  • Solar systems
  • Delivery vehicles such as vans, utes, trucks, or refrigerated vehicles
  • Cashflow funding for stock purchases or expansion

Without adequate financial backing for these areas growing your hospitality business can be difficult and stressful. 

Different types of hospitality loans

There are a number of different types of hospitality business loans, and the one that you need will depend on your individual situation.

For hospitality business loans there are:

  • Unsecured business loans/cashflow lending
  • Line of credit
  • Invoice financing
  • Equipment financing

 We’ll also be sure to help you understand the fees and charges, the repayment schedule, the interest rate and other loan terms.  This is why you should use a broker, because it’s important to us that you’re comfortable with the type of loan that we help you to acquire, and what it means for your business moving forward.

 

Getting hospitality finance quicker

There are exciting times ahead and you don’t want to spend weeks awaiting approval on a finance application, when those weeks are critical toa acquiring bookings, stock, and staff, all totaling lost revenue to your business.

To help make the commercial finance application process quicker, you’ll need these items at the ready:

  • Basic business information, such as your trading name, ABN/ACN, and entity structure
  • Personal identification documents
  • Details about what you’d like to finance

The key is speaking to a good broker early in your plans so we can help you through the process.

 

Ready for hospitality business finance

Whether you run a café, a restaurant, bar, or events/catering business, the right finance can position you for growth, and Alegra Financial Solutions would love to go on that journey with you.

Get ready to grow by giving us a call today on (08) 7084 1278, or filling in our Contact Form so that we can get in touch.

We are based in Adelaide, South Australia, but we proudly work with hospitality clients all over the country.

barista frothing coffee on a coffee machine