Fast Food Professional - February - March

Page 26

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.


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.


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


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 to make your investment reality.


Fastfood Professional • February and March 2018

February and March 2018 • Fastfood Professional


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