Search
The Caterer

Third of all funding demands from SMEs coming from hospitality

15 October 2013 by
Third of all funding demands from SMEs coming from hospitality

A third of all demand for money lending is coming from the hospitality industry, funding company Boost Capital has found, with the average cash injection per business around £40-50,000.

This is despite recent Bank of England figures showing that lending to hospitality SMEs (small and medium enterprises) dropped by 5.4% in the past year.

This means that despite the demand, many UK small businesses are struggling to find financing, as figures show that overall lending to SMEs decreased by £0.7m in August.

However, Boost Capital said that it has seen the number of enquiries, and the number of loans, for hospitality businesses increase above the SME average, with money going towards refurbishment of premises, business cash flow, buying of equipment and repairs.

Marc Glazer, chief executive of Boost Capital said: "We have seen a dramatic rise in enquiries from restaurants and bars specifically, since we launched in the UK.

"It seems that this sector is finding it particularly hard to access finance for growth from traditional means and it is very encouraging to know that we can help them expand."

Boost Capital is owned by US business financier Business Financial Services, with a recently-acquired credit line from US firm Wells Fargo Capital Finance (part of Wells Fargo & Company), and aims to provide businesses with funds within five days. It claims that its repayment plans are at affordable levels, and can therefore help SMEs see "light at the end of the tunnel".

How to… get support from the Business Growth Fund >>

The Caterer Breakfast Briefing Email

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

Sign Up and manage your preferences below

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.

close

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.