Guy Unger of Autograph Asset responds to Fred Crawley’s previous article, Food For Thought: Is Catering Finance Worth a Second Look for Shrewd Lessors?

The experience that Sam O’Donnell at Absolute Catering has experienced is not uncommon.  Many businesses that previously looked to leasing as an ideal way to make sales, have found themselves disappointing customers and losing faith in the facility.

To an extent they are right, credit providers have reduced in number, underwriting is more stringent and declines have increased.  But this seems to be more the case for the super brokers.  There are plenty of funding sources that smaller brokers use that are still keen to look at the Catering Industry.

These funders are more entrepreneurial than the big banks and are disinclined to deal with the larger brokers.  With smaller asset bases they don’t want to be swamped with proposals.   They want to look at a deal on its merits and take a view.  In this market it is just that sort of approach that is required.  Understanding the supplier and the customer is more important than ever.

These smaller funders also want to know that they can trust their brokers and that their brokers understand them.  Having a broker who knows how to package a deal and who to propose it to, will increase your acceptances and make leasing work for you again.  Leasing in the catering industry is not dead; it just needs a bit more effort.

As an example, 2 months ago I placed a deal for approximately £10,000 of funding for a new start Pizza Delivery/Takeaway, working from the kitchens of a tenanted pub.  The customer did have a good business plan but knowing who to talk to about the deal and how to present it made the difference.

It is not as easy as it was a year ago.  But if it was, we would not have learnt anything.  However if you have a broker who has put the effort into finding the right funding lines and wants to put the effort into packaging deals, Leasing in the Catering Industry is still a viable and effective option.

Guy Unger established Autograph Asset Ltd in 2006.  Autograph Asset provides a sales aid service to manufacturers and reseller of Catering Equipment, EPOS, Security Systems, Recycling Equipment, Manufacturing Equipment and IT. 

www.autographasset.co.uk