Everything You Need To Know:
Coffee Shops In The UK Running A Coffee Shop
With roughly 95 million cups of coffee drunk daily in the UK alone, and approximately 210,000 jobs created by the coffee industry, it’s safe to say that business is booming.
The newest generation of millennials make up 16% of the buyers of ground coffee and coffee pods, so whilst coffee served in house is still a great business opportunity, it seems like expansion into other products is imperative for any trending, up-to-date, small coffee shop.
With startup coffee shops on the rise, it looks like in order to be successful in the changing market, having a strong relationship with customers is essential.
That’s where one of our coffee shop loans comes into play. Our business loans will provide you with the funds you need to give your existing coffee shop the edge. Whether it’s more money for that extra machine, a little more advertising here and there, or even the creation of a whole new caffeine-filled concoction all together - our loans can help your business make its big break. No matter your situation, with our coffee shop loans granted in just 24 hours, the world is your oyster.
How to Start a Cafe Business, Your Way:
With the recent uptake of coffee by old and young alike, it would seem like the stars have aligned for you to begin your very own coffee shop. It’s not all laid out in the stars however, as cafes take commitment, time, and money - something we’re here to help you with.
Despite the portrayed easy-going atmosphere that coffee shops garner in the media, this is not a good model for money making, and will eventually lead to closures all round, which nobody wants to see, not least of all you, the owner. To combat this, there are a few things you should know before beginning your caffeine crusade…
For starters, many people get the wrong idea about cafes, so to get yourself some first-hand experience, we recommend visiting a variety of coffee shops, as well as setting time aside to work in a coffee shop to gain crucial industry experience.
This will help you get a good feel for the conditions a fast-paced business like a coffee shop performs under, including the brewing and selling of the coffee, marketing coffee beans or coffee machine pods and other potential merchandise opportunities. These other sales options are good to consider because as well as being a good way to market your brand, it also helps to form a stronger ‘bond’ with your customer base. This idea has permeated society through the introduction of big name coffee brands into the mainstream like Costa Coffee, Cafe Nero and, of course, Starbucks Coffee - which all interact with their customers through branded mugs, apps on their phones, and the selling of coffee products under their label.
Location is a key concept that often gets overlooked. The target customer for a local coffee shop is often grab and go, during the week this is busy office workers stopping by for a quick break, and on the weekend this is bustling shoppers that are keen to get back to their purchases. As a result, your ideal location will be close to points of interest and on land that has consistently heavy footfall.
Finally a good budget planner will carry you through both occasional mishaps and more serious problems that could arise. This applies for the concept for your cafe, design prospects, menu, products to sell and how much funding should be required to achieve this. With this laid out at the start of your journey, it will be easier for you to put your ideas into action and as a result make your dream a reality - something SME Loans can help with!
Coffee Shop Loans SME Loans Application
After securing funding, a wide range of positive spending opportunities open up to you: including expansion of premises, the ability to open in another location, purchasing new brewing machinery or even a high quality shipment of some new blend of foreign coffee.
Put simply, a quick café loan with SME Loans will give you peace of mind when problems crop up that you’d rather not spend sleepless nights worrying about…
To ensure you are eligible for one of our café business loans, please check that your business:
- Is registered in the United Kingdom
- Has been actively trading for a minimum of 6 months
- Has a turnover of at least £5,000 per month
- Has a business owner over the age of 18 years
- Is a limited company, partnership or sole trader
Finance Solutions for Cafés and Coffee Shops:
Making an immediate profit from a small business is very difficult, and often frankly unrealistic - this is true in all sectors of business, with a cafe being no different. When considering how to start a café business, startup costs can range from £20,000 to £100,000 depending on the size, style, location and a few other factors.
There are also recurring costs to consider, such as the cost of rent, utility bills, and general repairs that are bound to crop up, not to mention the occasional costly problems that arise when running a high-intensity, high-stamina business like a coffee shop. To help you cope with these seemingly staggering costs, we have a few finance options for you to consider…
Merchant Cash Advance:
A merchant cash advance is a great option for your coffee shop, café or tearoom because of the numerous benefits it can bring to your establishment. Working best for businesses that take payment through card terminals, your café business can access between £5,000 and £500,000 in as few as 24 hours.
This option is different to a business loan, as it functions as an advance on your business’ monthly profit through credit and debit card sales. Each month, a small percentage of these card transactions will go towards repayments, and as a bonus, your business gets to retain any revenue in cash transactions. As an even greater perk, there will be no interest on the borrowed sum - it is simply paid back in sync as you earn the money.
At SME Loans we can also offer unsecured business loans to coffee shop, café and tea room owners. By choosing a business loan, owners can look to borrow £1,000 to £500,000 to kick start or help maintain your company or fund a new business venture.
As with a merchant cash advance, the money should be swiftly supplied to your account in 24 hours, which will grant you the option to quickly dispatch any problems that may have arisen preventing cash flow, or alternatively get you started on a new business venture without so much as days wait. Once the funds have been received, they will be paid back in monthly instalments, with interest rates applied and included.
An “unsecured” business loan simply means that you will not be expected to secure the funding against any of your valuable assets, such as equipment, property or land. This can be a real advantage to small or new business owners, that maybe don’t enjoy the luxury of having expensive possessions to guarantee repayment. Instead, after signing the personal guarantee, the owner will become responsible for meeting any outstanding repayments if the business fails to pay. This ensures that all parties involved find themselves paid.
How To Apply
Head over to our application page. We will ask you for further details about your business, to ensure that we match you with the lender best suited to you and your company. We will need to know:
- The name of your coffee shop business
- The number of months or years you’ve been trading
- Your average monthly card sales or monthly turnover
We will then ask you to provide us with:
- Your title, first name and surname
- Your position within the business
- Your email address and telephone number
After these details have been provided, click to accept the terms and conditions and then click ‘get my quote’. Your application will then be processed and assessed by one of our approved business finance suppliers.
One of our account managers will soon be in touch with you by either phone or email to discuss the terms of your loan or cash advance agreement.
Once you have taken your time to carefully read through all of the terms of agreement, you should please sign the relevant documents and return them to the lender. You can then expect to see to the funding in your account within as little as 24 hours.