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Liquid Finance Case Study
The Stags Head
• A traditional public house and restaurant with
accommodation in rural Northamptonshire.
LIQUID
FINANCE
• www.stagshead-maidwell.co.uk
Funding growth
• Funded by Liquid Finance in November 2013 and August 2014
• Funding use: to ease transition between employment of chefs and to
refresh signage and areas of the building including the bar, kitchen and some bedrooms
• Turnover improving following deficit caused by underperforming chef
BACKGROUND
The Stags Head in Maidwell, Northamptonshire, is a traditional pub that ticks all the boxes from a business point of view:
it’s on a main road with a large frontage and has ample car park space as well as a beer garden. There has been a public
house on the site since 1766 and the current licensee, Robert Willoughby, has been in charge for the past fourteen years.
The business currently employs five full-time staff with an extra nine part-time and has a fluctuating turnover of around
£420,000 per year.
Like all pubs, there are cycles in the business with good and bad years. Ongoing challenges include general overheads
such as council tax, rent and utility bills as well as keeping on top of redecorating and upgrading equipment. There are
also specific challenges such as a drop in sales in the most profitable area of the business – the restaurant.
‘‘
Banks tend to look
at things differently
and don’t always see
the positives in a
business; they assess
risk differently.
A Liquid Finance cash
advance is more
concentrated and
should be used to
sort out a specific
opportunity or
threat. This could
be a short-term fix
or might be to help
get your business
into a position where
it could be sold on
‘‘
FUNDING REQUIREMENT
At The Stags Head, the chef is the highest paid employee so when mealtime sales struggled, due to the chef
under-performing, Robert Willoughby had to replace him. Although finding the right person took some time,
a business cash advance from Liquid Finance was exactly what the pub needed to help it get through this
difficult period.
Robert looked at getting a bank loan but decided that it would not suit his needs, as the loaning strategy of banks is
very risk averse. Because it is based on predicted future card payments worked out by looking at the business’s card
payment history, the Liquid Finance cash advance was a better option for him.
SOLUTION
Although struggling in its most profitable area, The Stags Head was still processing credit and debit card payments
and it is these that Liquid Finance uses to calculate an advance. Liquid Finance applies a factor rate “fee” to the advance
and purchases an agreed daily percentage of the business’s future card receivables until the advance, plus fee, is repaid.
Pricing is bespoke to match the business’s needs. Funding is provided within as little as 5 days - from application to
cash in the bank and daily batch settlements are automated.
RESULTS
Robert Willoughby describes the Liquid Finance cash advance as “priceless” and says that it helped him look at his
business in a different way: “It helped me think outside the box and to manage money in advance. A Liquid Finance
business cash advance is a simple and straight forward concept and businesses that can benefit from this type of
funding need not be suspicious.”
‘‘
‘‘
I have taken two advances from Liquid Finance so far to enable my business to grow and
improve the product and service I give my customers. With the finance in place, it has enabled me
to refresh areas of the building including the bar, kitchen and some bedrooms. The service has been
exemplary and Liquid Finance has been so easy and professional to deal with. I had no hesitation in
renewing, knowing the money was there and I could choose when and how I used it to grow my
business. Liquid Finance is a pleasure to deal with.
Robert Willoughby, The Stags Head