How specialist lending amplifies the possible Across the country, thousands of fast food owners are stuck in first gear, when they should be racing to their full potential.
T
he price of equipment is a step on their brakes. As
own. We’re talking huge coolers, cookers, display cabinets…
we all know, customers want tasty, well-prepared food
Basically the lynchpins of the premises. But Rumba were
they’ll keep coming back for. But if you don’t have the
approved within days. Their lending requests grew, and we
right cooking gear when the ‘Open’ sign hangs on
managed to give them access to more cash for such a big
your door, that’s almost impossible to achieve.
transition.”
So it’s a matter of potential – of funding the resources
Leasing does not only measure repayments out over
you need more than anything else. In the past, mainstream
time, lessening the pressure of equipment costs. It’s also
lenders understood this. They would step in and arrange a
a tax-free expenditure. In several ways, it has a beneficial
finance agreement for startups or growing fast food brands.
effect on what you’re trying to save, earn and afford.
Now, though, it’s a different story. Most banks and traditional lenders are far too selective with their cash. Risk
Mark spoke further on the Rumba client, sharing more detail on what they wanted and how it came about.
scares them, especially when it’s tied to heavy-duty kitchen
“Initially we provided finance for typical purchases: the
gear. And, as a result, it’s leaving a gap in the market – one
display, and food and drink-related equipment. But when
that some providers are diving into head first…
Martin, the owner, sought funding to kit out an entire venue,
Johnson Reed is one such lending resource. They are
we stepped up our support. We helped them transform
committed to their areas of expertise: one of which is
several thousand square feet of space – something the
catering and fast food. For large, top-line equipment such
management team were mostly paying for themselves
as fryers, cookers, fridges and ovens, they help businesses
through pensions and personal finance. Our lenders gave
overcome those financial barriers that have been getting
them an extra push.
higher and harder to tackle. With Johnson Reed, common sense lending is back on the menu. It is, in the words of Director Mark Johnson, a choice that many business owners assume they don’t have.
“The business was a few years old, which always helps lending requests. Digging deeper, we saw that Rumba bar is just one enterprise within Life & Soul Ltd., a group of hospitality sites in the North West. It was obvious we were
“The personable side to lending has been lost,” he tells us.
dealing with capable, experienced business leaders. Our
“Barely anyone knows who their bank manager is anymore.
lenders were doubly confident they’d meet the payment
Plus, the mainstream criteria are so strict, especially
schedules.
for startup businesses. Catering and takeaway sites will
“One day, we hit the road and visited the venue in person.
struggle unless they have what they need from day one.
That’s when we pointed out the counter mirror – it, along
We’re saying ‘yes’ to heavy equipment finance, with lenders
with the joinery, wasn’t secured yet. Martin and his fellow
who appreciate many forms of fiscal security.”
directors agreed. Soon enough, extra fittings were added to
Some assets – like an industrial cooker – are typically
the finance sum. The client also let us get creative and open
deemed worthless to mainstream lenders as they can’t be
funding for four caravans to be used as seating booths for
resold if payments aren’t met. This holds fast food outlets
their customers.
back from top earnings in a competitive environment. The
“The thing to note here is Rumba’s ambition. The bar had
same is true of flooring, ceilings, window fittings and other
to feed families in the day, serve social functions by night,
aspects of a fit-out.
and keep the alcohol flowing for those who don’t want to
“We want takeaways to be aspirational,” Mark explains, “so they make an impact right from the get-go. “Recently, for instance, we put on our quirky hats for
leave the dancefloor. To that end, they ended up financing a pizza oven too. We loved making this happen, piece by piece, through to approval.”
Rumba, a rum bar in Congleton, which was moving wholesale
To gain specialist, no-nonsense financial advice, speak to
to a new building on the other side of town. That was going
Johnson Reed on 0161 429 6949. Alternatively, message them
to cost the owner far more than he could afford on his
at www.johnsonreed.co.uk to make your investment reality.
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Fastfood Professional • February and March 2018
February and March 2018 • Fastfood Professional
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