Award-winning SME lender 365 Business Finance has reported a 176% year-on-year increase in restaurants and food-serving outlets taking the company’s revenue-based finance.
Compared to 2020, the latest data has revealed a 363% rise in lending to these types of hospitality businesses, and over the last 12 months there has been a 35% increase in the amount of funding given to these SMEs.
Such insights from 365 Business Finance show how restaurants and food-serving outlets across the UK are increasingly realising all of the benefits of fast and flexible finance, amid tough economic conditions.
Mainly used to help with cash flow, expansion plans, the refurbishment of premises, and the purchasing of new equipment and stock, revenue-based finance can assist with the need to plan ahead in terms of cash reserves to battle against the impact of rising inflation rates.
In some cases, new vendors and the owners of food-serving hospitality businesses are turning to the concept of mobile food trucks, which remains a growing trend and a highly-popular takeaway choice among consumers. As of 2022, the street food market is worth approximately £1.2 billion and is projected to grow to £1.6 billion** by 2027/28.
Andrew Raphaely, Managing Director at 365 Business Finance, said, “It’s incredible how the hospitality industry continuously adapts, with business owners often finding new ways to present their offering to customers in the face of rising inflation and challenging economic times.
“We have more clients in the hospitality and food-serving sector than in any other industry, and that is something that has remained a constant both pre and post-pandemic.”