Alternative finance provider Liberis has allocated £30m of new lending for the hospitality sector to meet demand.
As small businesses continue to struggle to get credit from banks, Liberis said it had seen a 300% increase in demand from hospitality companies over the past two years requiring funding for new stock, new equipment, refurbishments and to plug seasonal cash flow gaps.
The Bank of England's latest Trends in Lending report published recently said the stock of lending by banks to small firms has continued its four-year decline, contracting by £500m in the three months to February 2014.
Liberis CEO, Paul Mildenstein said: "The economy is picking up and these businesses need capital to finance projects for improvement and growth which will make them more successful. Yet the funding is still so hard to get because they don't fit the banks' outdated lending models. Our lending criteria is based on future card sales which is much more pertinent to a hospitality business and we say yes to 90% of businesses who apply."
Liberis' business cash advance provides companies with an unsecured cash injection of between, £2,500-£300,000 with repayments based on a set percentage of the business's future credit and debit card takings until the amount is paid back.