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.