Lake District hotel uses crowd funding to raise £40,000 revenue-based loan

01 April 2015 by
Lake District hotel uses crowd funding to raise £40,000 revenue-based loan

An 11-bedroom hotel in the Lake District is believed to have become the first company in the UK to raise a revenue-based loan through crowd funding.

The Glen Rothay hotel in Ambleside has secured £40,000 from six investors via Crowd2Fund to finance the refurbishment of its Badger restaurant and bedrooms.

Unlike traditional crowd funding loans, Glen Rothay will not be tied into making fixed repayments, but instead will make repayments based on turnover.

Paul Knowles, the owner of Glen Rothay with his wife Eleanor, said: "The flexibility of the loan means that we should easily be able to make repayments, as they will vary in line with our revenues. Our Crowd2Fund campaign proves that it is possible for long-established legacy businesses to successfully raise or borrow money online by reaching out to the crowd."

Located in a property which dates back to 1624, the hotel expects to be able to replay its loan within two years. The business achieved a profit of £37,000 on a turnover of just over £400,000 during 2012 when the business was under previous ownership, according to the hotel's last accounts filed at Companies' House.

Team UK launches crowdfunding campaign to boost Bocuse d'Or success >>

Pizza Rossa exceeds crowdfunding target >>

TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking