Hospitality trade afforded boost after trading results; ambitions companies rewarded; investment key to business growth
Hospitality industry entities that invest in their business are more likely to prosper than those who do not, new research has found.
Around the world, companies, of whom reduced investment in their hotels, catering teams, and wider hospitality faculty endured reductions in overall success.
At the same time, London enjoyed the greatest buoyancy of any city in the world, which was stimulated by funding levels that usurped all others, too.
Investment in North America fell by 21 per cent during the same period, underlining the importance of securing investment in the hospitality sector to stave off competition from emerging cities like Prague, Paris, Amsterdam, and Athens.
Head of Hospitality at EMEA Cushman and Wakefield John Hubbard warned a lack of stock could harm the hospitality industry. He said: “An endemic lack of stock will see investors broaden their outlook to non-core locations with strong fundamentals for tourism.
Purchasing new equipment, stock, facilities, and other assets does not have require any upfront investment, instead, utilising asset finance can preserve all working capital — covering cash flow, invoices, and other expenses — leaving your new assets to boost growth and improve sales.
No initial investment ensures you can use your funds to maintain operational consistency, avoid disruption, and reap the benefits of investing in hospitality finance without sacrificing your cash reserves.
Start-ups often struggle within their first year of trading, with 90 per cent of new businesses folding during their first year of operations, with asset finance this does not have to be the case.
Any asset can be purchased utilising this option, therefore whether your business is established or burgeoning — cash rich or not — utilising asset finance leasing can secure the stock and assets you need to safeguard existence and boost growth.
Some businesses have chosen lengthy processes such as crowdfunding to secure investment, but the process of growth can be stimulated autonomously and without the need of capital investment of other means of fund generation.
New stock and equipment can be sourced, supplied, or fitted in a matter of days, with same-day financial approval ensuring you can secure immediate investment without the need to sacrifice business needs and ambitions.
The Cheese Bar, a successful London restaurant, sourced the funding it needed to open a second store, but sacrificed shares in the company to fulfil its ambitions.
Finance is secured most flexibly and efficiently using the asset finance model and can help all businesses within the hospitality and catering sector meet the demand for new stock before interest wains.
The aforementioned restaurant joined clients of Portman in enjoying growth and profit increases thanks to the cash injection, but the latter’s clients did not have to sacrifice anything to secure the funding and enjoyed immediate benefits.
Head of Marketing at Portman Asset Finance encouraged all businesses within the hospitality to enjoy success through asset finance. He said: “Companies in hospitality and catering have the opportunity to expand immediately without using working capital – there is no better time to obtain fresh stock and equipment than the current period of industry buoyancy.
“Using asset finance to grow your business now is pivotal with the impending interest rate rise, which will make borrowing more expensive and the scope for increased ROI limited.”
If you would like to purchase new equipment, stock or facilities, speak to our expert Account Managers on 01604 321 995. More details about our choice of finance products for catering and hospitality industry can be found here.