• Home
  • Services
    • Asset Finance
      • Campervan and Motorhome Finance
    • Invoice Finance
      • Invoice Finance for Construction
    • Renewables Finance
    • Bridging Finance
    • Commercial Mortgages
  • About
  • Who we help
    • Intermediaries
    • Business Owners
  • Team
  • Case Studies
  • Insights
  • Contact
Menu
  • Home
  • Services
    • Asset Finance
      • Campervan and Motorhome Finance
    • Invoice Finance
      • Invoice Finance for Construction
    • Renewables Finance
    • Bridging Finance
    • Commercial Mortgages
  • About
  • Who we help
    • Intermediaries
    • Business Owners
  • Team
  • Case Studies
  • Insights
  • Contact
Search
Close

Insights

The Post Lockdown Future of Scottish Hospitality

internal
Edinburgh Skyline

The hospitality industry in Scotland is one of the most resilient and dynamic sectors in our economy, however it’s been affected by Covid more than most, due to the imposed restrictions and unclear and ever-changing guidance.

Despite the Scottish Government pledging £400m of support, many wedding venues and hotels are finding it difficult to access debt funding as they now have no trading history for the last 12 months.

A typical small hospitality business has taken on between £60,000 and £90,000 in bank debt and deferred bills as of February this year just to survive Covid, with that debt rising with every week of low or no income. (source: The Scotsman, 12 May 2021)

Despite easing of restrictions, hospitality remains one of the worst affected industries.  

Figures from the Business Insights and Conditions Survey (BICS) collated by the Office for National Statistics and published by the Scottish Government, show only 41 per cent are currently trading and 76 per cent have lower turnover than expected – more than twice the all-industry average.

Nearly half – 46 per cent – say they have less than three months’ cash reserves, if any, and 8 per cent fear they won’t survive the next three months, again more than twice the all-industry average. (source: The Scotsman, 12 May 2021)

What support is available?

From speaking to wedding venue operators, these businesses are seeing an encouraging surge in bookings as far in advance as 24 months ahead, such is the pent-up demand.

Venue operators are looking to invest in premises to not only make them Covid compliant but to accommodate the increased demand.

Access to government support has been essential to cover losses as a result of being closed over lockdown, but some operators are finding access to growth funding such as the recovery loan scheme challenging, combined with tepid appetite from many funders in the market to support the industry until all restrictions are lifted.

As a commercial finance expert, Breadalbane has supported several wedding venue operators by looking at raising funds for growth and expansion.

Utilising our unique panel of lenders who are committed to supporting the hospitality industry, we have used the assets of these hospitality businesses to raise cash.  

In addition, existing owner operated venues are looking to refinance existing debt held against their properties as a way to not only unlock much needed capital, but also to restructure existing debt to lower monthly commitments and build some headroom in their working capital.

We understand that every business is different and it’s our aim to find the most appropriate business funding solutions for you. If you’d like to learn more about the options available to you, such as asset finance, bridging finance or commercial mortgages or to discuss any other aspect of this blog in more detail, please do not hesitate to contact us today.

PrevPreviousThe Breadalbane team continues to grow with 4 new appointments
NextOur How to Get Funder Ready GuideNext

Recent Posts

Breadalbane Corporate Round-Up

June 1, 2022

Capital interest: Breadalbane Finance invested in Edinburgh Rugby’s future

May 4, 2022

Investment remains integral to the growth of Breadalbane Finance

May 4, 2022

Breadalbane commits to west central Scotland with new office move

April 7, 2022

Recovery Loan Scheme Explained

November 17, 2021

How to Free-Up your Working Capital

October 29, 2021

Top 5 Considerations before Financing your Campervan or Motorhome Fleet

October 18, 2021

How to Fund your Next Property Project

October 1, 2021

How to Improve your Cashflow

September 9, 2021

Breadalbane Partnership with Edinburgh Rugby

August 25, 2021

Sign up to our newsletter

Business owner Sign up
Intermediary sign up
  • The trusted commercial finance brokers.

Unit 2, Block B, Kittle Yards,

Causewayside,Edinburgh, EH9 1PJ

©Breadalbane Corporate Solutions Limited, 2022

Our Privacy Policy | Made by 39steps

Envelope Phone Linkedin Twitter
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT