The hospitality industry has been facing rising costs in the UK over the past few years. A hike in national insurance has increased employee wages, relief on hospitality business rates has been reduced from 75% to 40%, and food prices continue to inflate.

But all is certainly not lost for hospitality businesses across the UK. In fact, Crispcap has recently arranged a quick business loan for someone who wanted to finish a pub refurbishment.

He approached Crispcap through an introducer for business finance. He wanted to promptly finish a renovation that would transform his pub into a multistorey entertainment venue. The aim is to draw in wider demographics and more profits to hit back at rising hospitality costs.

Learn more about how a business loan has helped his vision become a reality.

How Did the Business Start?

The owner of the pub is somewhat of a hospitality veteran.

He’s been managing pubs since he was 18 years old and knows a thing or two about getting punters into a boozer to enjoy themselves. But even a hospitality hotshot like him needed to keep up with the rising cost of living.

He saw an opportunity to transform his pub into a centre of entertainment for people of all ages. He began renovating different levels of the pub but needed additional funds to complete the project.

What Were Their Challenges Before Getting a Quick Business Loan?

Many difficulties provoked the business owner to reinvent his high street pub with a quick business loan.

National Insurance Hikes

A minimum wage increase came into force last month which results in higher national insurance contributions for each employee.

Paying a team of bartenders and glass collectors to keep punters served is more expensive than ever. The owner needed a way to get more paying customers through the door.

RHLR Reduction

From April 2025 the Retail, Hospitality, and Leisure Relief (RHLR) has been reduced from 75% to 40%.

This means that the tax charged on non-domestic properties (like pubs) has significantly increased this year, and business owners need to find a way to bridge the new financial gap.

Food Inflation

Food service is a huge draw for getting people in pubs in the UK.

But, to pub landlords’ frustration, food inflation has hit an 11-month high as prices rose 2.6% last month. Pub dining is an increasingly expensive service to offer so it’s only worthwhile when it’s carried out at large volumes.

How Did a Quick Business Loan Help?

At Crispcap, we arranged a loan amount of £6,000 for the pub in a matter of hours. The business owner chose a loan term of 6 months as the venue should be trading again soon after the refurbishment.

He’s decided that the first floor will be a family area whilst the next floor down will be for corporate events. The floor beneath that will have a DJ on the weekends and a bar until late.

The quick business loan has allowed him to purchase raw materials rapidly and hire more tradespeople to finish the job.

Instead of waiting until economic inflation drains the company’s profits, the owner is promptly adapting his business to reach more people and improve its bottom line.

What’s Next For The Business?

With the funding now secured, the business owner is in the final stages of expanding the pub as he envisioned.

Its position in London Marylebone offers high footfall and the potential to attract even more demographics from the busy high street. With a fresh renovation, the venue is set to become a melting pot of ages and cultures that want to have fun.

The owner is even considering getting security on the door in anticipation of the increased crowds.

How Can You Get a Quick Business Loan?

You can apply for a business loan in 30 seconds here. The application process does not need a credit check, and we can fund businesses in as little as 4 hours. Get in touch to discuss our straightforward eligibility criteria and different types of business loans.