Alternative finance proving 60% more popular for pubs and bars
As a funding provider for small to medium sized companies, 365 Business Finance has revealed that pubs and bars are the second biggest client type currently signing up to merchant cash advance products.
The London-based lender has witnessed a 60% year-on-year increase in pub and bar owning customers over the last 12 months and expects a similar increase in demand throughout 2020, as more pubs are discovering this alternative form of funding.
Also, as a nation, the Brits enjoy watching sport and with a full calendar of events this year to enjoy – whether actually spectating or viewing all the action from a bar – sports fans will be flocking to soak up some of the atmosphere that major events like UEFA Euro 2020 will offer. Many pubs and bars prepare for big sporting events with merchant cash advances to aid with stock and expansion.
Managing director of 365 Business Finance, Andrew Raphaely, said, “Pub and bar owners are under pressure as increasing costs have put strains on their cashflow. We’ve seen a significant increase in demand for our merchant cash advance service as these business owners have sought funding to help manage cashflow, as well as to expand their businesses, refurbish and – increasingly – fund improvements to their premises, such as renovating kitchens or adding guest rooms.
“One of the reasons our merchant cash advance has proven so popular with pubs and bars is its flexibility. As repayments are taken as a small percentage of future card sales, it means the business only repays the advance when it receives card payments from customers – so if it’s a slower month, less is repaid and the business’ cashflow is not adversely impacted.
“This year we’re expecting a further surge in demand for our funding, as pubs and bars prepare for a particularly busy year of sport, with trade expected to see a welcome boost from the Six Nations, Euro 2020, Wimbledon and Test Cricket.”
