- Client: London-based hospitality start-up founded by an experienced management team
- Challenge: Securing funding for a significant venue fit-out before trading had commenced
- Loan Amount: Circa £1.4 million bridging facility
An experienced hospitality team approached Enness Global seeking funding to support the launch of a new premium restaurant and pub concept in London. Although the founders had extensive experience within the hospitality sector and had developed a detailed business plan, the company had not yet begun trading, meaning there was no historic financial performance for lenders to assess.
The funding was required to complete the fit-out of the premises ahead of opening, allowing the business to progress from development into operational trading.
Pre-revenue hospitality businesses can present challenges for many traditional lenders. Without an established trading history, mainstream banks are often reluctant to fund significant capital expenditure, particularly where repayment is expected to be supported by future business performance rather than existing cash flow. As a result, lender appetite is frequently driven by the experience of the management team, the quality of the underlying security and the overall strength of the proposed business plan.
Enness introduced the founders to a specialist lender with experience providing short-term funding for commercial projects requiring flexible structuring. A circa £1.4 million bridging facility was proposed over a term of approximately 24 months, providing funding towards a substantial proportion of the venue fit-out costs, with the remaining project costs supported by founder equity.
The proposed facility was structured against appropriate security and designed to allow funding to be drawn as development costs were incurred, with a planned exit through longer-term commercial refinancing once the business had established a trading record.
Although every transaction remains subject to lender approval and individual circumstances, the proposed funding structure demonstrated how specialist bridging finance can assist experienced operators launching new commercial ventures where traditional lenders may have limited appetite.
This case highlights how bridging finance can provide an effective short-term funding solution for pre-revenue businesses undertaking significant capital investment. By focusing on the experience of the management team, the strength of the security and a clearly defined exit strategy, specialist lenders may be able to support projects that fall outside conventional commercial lending criteria.
Disclaimer
Information contained in our case studies is for illustrative and market commentary purposes only. Some examples may be based on multiple client scenarios or enquiries and do not necessarily represent completed transactions. Every application is subject to individual circumstances, lender criteria, valuation, underwriting and approval.
Enness Global is a credit broker, not a lender. Bridging finance is a short-term borrowing solution and may not be suitable for all borrowers. Commercial lending is subject to status and lender criteria.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
