Challenge: Despite having run a successful family restaurant for 5 years, a client was unable to secure funding for a second restaurant in a nearby suburb. As the business was set up as a separate entity it was classed as a “start-up” hospitality business and could not access funding through mainstream lenders.
In this situation, the finance options available were mainly high rate, rolling rental products which would add a significant costs to the business.
Finance Solution: Service Finance was able to fund the full amount over 36 months. The existing business demonstrated strong serviceability on interim 2017 financials, had sound director property backing, clean credit and 5 years trading history.