Fast funding for cafés, restaurants, bars and accommodation

Hospitality runs on tight margins and short notice. A chiller fails on a Friday night. The coffee machine needs a rebuild before a busy weekend. A long-awaited refit can finally go ahead, but the builder wants a deposit this week. Winter in a beach town, or summer in a ski town, means months of lower takings while rent and wages carry on.

What hospitality businesses fund

• Breakdowns and repairs: fridges, ovens, extraction, dishwashers, coffee machines.
• New equipment: a second oven, a pizza oven, a better espresso set-up, an ice machine.
• Fit-outs and refits: new seating, bar counters, outdoor areas, toilets, kitchen upgrades.
• Stock: wine and spirits ahead of the festive season, bulk produce buys.
• Seasonal gaps: covering rent and wages through quiet months.
• Compliance: fire, food safety or accessibility upgrades required by council.
• Growth: a second site, a food truck, catering equipment.

Why lenders can move quickly for hospitality

Most hospitality income lands every day through card terminals. That gives lenders a clear, frequent picture of what a venue earns, and of how steady it is through the week and the year. A café with twelve months of consistent EFTPOS deposits into one business account is easy to assess.

Same-day funding is possible for smaller unsecured amounts when statements can be linked on the first call and the purpose is clear.

Matching the funding to the need

Urgent repairs and small purchases: a quick cash flow loan or unsecured term loan, repaid from daily takings.

Seasonal dips: a line of credit set up during the busy season, drawn during the quiet one.

Kitchens and equipment: equipment finance, secured over the gear, spread over its working life.

Major refits or a second venue: a loan secured over property, or a combination of equipment finance and an unsecured loan.

Watch the repayment rhythm

Many hospitality loans use daily or weekly repayments, which can suit businesses with daily takings. But a daily debit that’s comfortable in January can bite in a slow June. Before signing, check the repayment against your quietest month, not your best.

What lenders want to see

• Six to twelve months of business bank statements, ideally including a quiet season.
• The lease: remaining term and renewal options.
• Your liquor licence, if relevant, and food registration.
• Quotes for equipment or fit-out work.
• Existing loans, leases and any tax arrangements.

An illustrative example

A Wānaka restaurant takes most of its revenue in winter, with ski tourists, and summer, with lake visitors. In late April, between seasons, its walk-in chiller fails and needs replacing at $28,000. At the same time, the owners want to add an outdoor heated deck before winter, quoted at $65,000.

With twelve months of statements showing two strong peaks, the restaurant takes a short unsecured loan for the chiller, funded the same day, and finances the deck through a 24-month equipment and fit-out facility. Repayments are set at a level the quiet months can carry, with the option to repay more during peaks.

Keep the application simple

Run all takings through one account, keep GST and PAYE up to date, and have quotes ready. The funding speed finder can show the fastest route for your amount.

Buying equipment second-hand

Used hospitality equipment is common in New Zealand, especially when venues close or refit. It can be excellent value, but lenders treat it a little more carefully than new gear from a supplier. If you’re buying a used combi oven, coffee machine or walk-in chiller, ask the seller for proof of ownership, the model and serial number, and evidence of recent servicing. A quick search of the Personal Property Securities Register confirms nobody else has finance secured over it.

If the equipment is coming from a venue that has closed, check whether a liquidator or receiver is involved, because they will need to sign off the sale. Lenders are happy to fund used equipment where the paperwork is clear. Where it isn’t, a small unsecured loan for the purchase is often simpler than asset finance. Either way, getting the paperwork sorted before you ask for funding keeps the whole thing to a day or two rather than a week, which matters when the kitchen is closed until the replacement arrives.

Talk to a real person

Asking what’s possible doesn’t touch your credit file, and we don’t pass your details around a crowd of lenders. A real person reads your enquiry, understands how hospitality cash flow moves and calls you. Start your enquiry.