An exciting Mediterranean restaurant group had established themselves in the South West and were looking to expand. Having developed a strong reputation as an exciting and fun place to dine, they were keen to diversify their restaurants and develop into new locations. Having just found the perfect site, they realised it needed a complete fit-out. Due to their ambitious plans this required financing for all of the high quality equipment necessary for the restaurant to function.
Although the existing restaurants in the group were very profitable, the nature of the equipment meant that funders would only advance so much against it, leading to a shortfall if only dealing with one lender.
We syndicated the deal out to three funders, allowing the customer to get all the equipment needed at the same time. Each lender knew the others were involved, with each funding their maximum amount based on the proposal and taking an equal share of the supplier’s total invoice. What this case shows This deal clearly illustrates the value added by an intermediary. Alone, a single lender wouldn’t have fulfilled the financial needs of the restaurant, which in turn would have prevented their growth- even though they could prove they were a profitable business. So, by bringing the various lenders together we were able help them develop the business, and set up a stunning restaurant with fantastic new catering equipment.