Adelaide’s hospitality businesses are no strangers to juggling rising operator costs, quieter trading periods and the constant need to invest back into their venues.
For otherwise viable cafés, restaurants and bars, the challenge is not always a lack of customers or a struggling business. Sometimes, it is simply having access to the right amount of working capital at the right time.
Universal Finance Commercial has focused on commercial funding for the past 20 years, helping businesses explore finance options tailored to their individual circumstances.
CEO Tony Marquez says products such as business lines of credit and unsecured business loans can give operators greater flexibility, particularly when funding renovations, equipment purchases, business acquisitions or short-term cash-flow requirements.
One recent example involved an Adelaide beachside hospitality business preparing for a new fit-out during its quieter season.
“The line of credit allows the client to draw down the amounts required at a particular time – and they only make payments on what is drawn down,” Tony said.
“That way the client could pay for the fit-out in stages, maximising their cash flow and the interest costs.”
Unlike a traditional loan where the entire amount may be provided upfront, a line of credit gives a business access to an approved pool of funds that can be drawn on as required.
According to Universal Finance Commercial, repayments are only made on the amount used from the facility, giving businesses the option of keeping additional funding available as a reserve if an unexpected expense or opportunity arises.
In another example, a client reached out to the team for the purchase of a cafe. They were able to assist in obtaining funding without using property as security, the team said.
“This is something everyone else they had spoken to failed at and even struggled with the major banks,” Tony added.
For Universal Finance Commercial, the key difference is its focus solely on commercial lending.
“We specialise only in commercial transactions,” Tony said.
“When reaching out to Universal Finance Commercial, your consultant doesn’t work with consumer finance, which really allows them to be an expert in business funding and assisting clients that need a special tailor-made solution.”
The business says that focus allows its consultants to look more closely at how a hospitality venue operates and determine which funding structure may best suit its individual circumstances, rather than approaching every business with the same product.
Its team is also based locally at Universal Finance’s Kent Town office, with consultants able to meet clients in person and talk them through the available options.
“Usually once a client obtains all this information they are much more comfortable and are really quite surprised with the flexibility that is available across all funding options we have in place,” Tony said.
For more information or to book a consultation head to the Universal Finance Commercial website.
Universal Finance
Enquiries & Quote line: (08) 7228 5615
Where: 3 Dequetteville Terrace, Kent Town
