For bars and restaurants, having secure finances and looking after the bottom line is your priority, more so now than ever. This means making sure that your cash flow is strong and your money goes further, to ensure you can carry on trading and making a profit, whilst keeping costs down. As we all know, this isn’t as easy as it sounds, and unexpected circumstances often dictate what comes in and goes out of your business. This makes it your priority as an owner to balance the books and make smart decisions for your business.
We work with hospitality owners across the U.K who want to increase their revenue, fill tables and keep costs down, whilst keeping customers happy, which can be a tough balancing act. However the benefits of financing or leasing, whether it’s kitchen equipment, furniture or a loan, can all contribute to achieving these aims. Take a look at some good reasons to use finance for your bar or restaurant.
Cash is King
It’s important to have money in the bank for rainy days, emergencies and unexpected events. Cash is king and this is something to live by. By using finance to expand or improve your restaurant, you can keep the cash in your bank and keep your cash flow strong. Regular monthly payments are more manageable and allow you to maintain a healthy bank balance, ensuring your business is strong in the long-term and can operate as you need it to. This means you can take your hospitality business to the next level, without worrying about your bottom line.
Afford Quality
Quality equipment or furniture means quality food, drink and service. Financing or taking a loan to secure new equipment gives you the ability to afford the best quality. Your restaurant or bar relies on orders and filling tables, which will only happen if the food and drink is to a high standard, made quickly and efficiently, to keep people coming back and wanting more. By using finance to upgrade your existing kit or add new equipment, you can increase quality, without restrictions. This allows you to grow your business without touching your cash reserves or having to save up, as this could end up costing you revenue and business in the long-term.
Increase Revenue
Using finance to secure new, better quality or more equipment can help to increase the size of your menu, increase the capacity of your restaurant or increase average spend per table, which can generate increased output and more revenue for the business. By utilising different means of finance you can take your bar, restaurant or cafe to the next level, offering a wide range of options for both food and drink, with more tables to generate more bookings and orders, this will help you to grow your business over time. As you know, this can’t be done standing still, you need to keep equipment up to date, cope with demand and work towards full capacity by offering quality food and drink, giving customers something to shout about.
Decrease Costs
This also means that you can decrease costs, by having higher quality and more efficient equipment, with lower running and maintenance costs, attracting more customers. Your profit margins will be improved, as the cost of making your dishes and drinks will decrease due to the reliability, quality and efficiency your equipment can provide, alongside increased revenue through greater output. The better your equipment, the longer it lasts, the less it costs you in maintenance or replacements and the higher profit margin it allows you to make. Overall this will allow you to maintain high quality in the long-term whilst operating at a profit, which we know is the number one rule.
These are just four ways finance can help your business, helping you to make money, save money, spend money sensibly whilst keeping money too. It gives you unlimited options to grow and improve your business, keep you financially in the black and keep your customers happy.
If you are interested in a catering, bar or restaurant loan, equipment or asset finance, or any other financial products for your business, get in touch with our team, contact us at 0161 429 6949 or [email protected].
