Asset finance may not be the best option for your business. Neither a traditional commercial business loan from your bank. Why? Because both can put constraints on your business cashflow. Many types of catering equipment finance loans are funded by asset financing companies or unsecured or secured business finance.
There is however a product that is still fairly new to the market but is being heavily backed by the investment arm of the British Business Bank and the UK Government. Unlike other forms of finance this product has no arrangement fees, early or late payment hidden penalties. It doesn’t require you to pay back a set amount per month.
In fact it does the opposite. A merchant cash advance is the perfect choice for catering equipment finance. Why? Firstly this type of borrowing is an especially great fit for businesses in the hospitality sector as most restaurants, hotels and pubs use a credit card machine to process customer sales transactions and it’s precisely those sales that are used to repay the loan.
Depending on how much your business turns over on card sales alone will determine how much your business can borrow for your catering equipment finance. A set percentage of each future credit or debt card sale is agreed to repay the loan amount. So when you make a sale a small percentage is deducted and sent to pay off the loan value.
This works especially well when your business has peaks and troughs meaning you only pay back in line with those sales. There is no lengthy paperwork, no security required such as a personal or business asset to secure against the loan.
This type of new catering equipment finance has no fees or charges associated with it offering the business owner full transparency at all times.
We have helped many UK businesses find catering equipment finance. Our product is subsidised by the investment arm of British Business Bank which is itself backed by the UK government. We can also help many types of businesses where other funders have declined the business due to adverse credit.