Recent times have been a struggle for businesses of all size, none more so than hospitality businesses such as restaurants, pubs and hotels.
If, like many business owners in similar situations, you have taken on numerous debts to stay overfloat, it can feel dauting.
Business debt consolidation won't necessarily reduce the total amount owed, but will combine all of your existing loans into one, more manageable repayment. This can, in certain circumstances, lead to a lower interest rate, or an extended repayment schedule that will reduce the amount paid every month. Having just the one debt repayment can also help to reduce your business administration.
Find A Restaurant have partnered with Mill Wood Finance to offer business debt consolidation solutions for hospitality businesses.
Step 1 | Step 2 | Step 3 |
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Request a discovery call with Mill Wood Finance to discuss your financial position and objectives. | Mill Wood Finance will prepare your business case for the debt consolidation application. They have extensive experience working with hospitality businesses, helping them to put together a compelling business plan in your favour. | If approved, Mill Wood Finance will remain in contact for all financial support and queries you may have moving forward. |
Your hospitaity finance broker will take the time to understand your financial position, including your current debts, assets and trading history. Working with a hospitality specialist will pay dividends due to the the complexities and unique nature of restaurant, pub and hotel finances.
Often, the goal of business debt consolidation is to achieve a more desirable cash flow. Whether achieved through securing a lower interest or spreading out the repayments over a longer schedule, this lower consolidated repayment every month can be vital during the lean times many business owners find themselves in at the moment.
Your broker will then create a business case, including key documents such as a credit report, to submit to a panel of lenders. This business case report will detail the reasons why you require the consolidation, as well as showing your repayment track record. A strong business case will help to show the lenders that you are a trustworthy borrower, which can result in offers of lower interest rates compared to riskier loans.
Any registered business in the UK can make an application for business debt consolidation. However, the individual lenders will have their own eligibility criteria and the application process might differ.
Working with a specialist broker like Mill Wood Finance helps to shield you from the admin headaches of applying for various different loans. They will help you to understand your options, and can often access offers not available over the counter.
Whilst every lender will have their own processes, generally you will require:
There are primarily two types of business debt consolidation loans, secured and unsecured loans.
Secured loans are more common. For secured consolidation loans, you will need to offer collateral to act as security, allowing the lender to reclaim their debt from the asset should you fall behind in your repayments.
Unsecured loans fo you require you to provide collateral, however these are often harder to obtain and are associated with higher repayment terms due to the higher risk to the lender.