A family-run hotel and restaurant on the southernmost island of the Inner Hebrides required a cash injection to renovate their guest rooms during the off-season, without putting additional strain on already seasonal cashflow.
Client: The Lochindaal Hotel
Industry: Hotel & Restaurant
Location: Islay, Scotland
Service Provided:
The Challenge
A long-established family-run hotel and restaurant on the island of Islay, one of Scotland’s most picturesque yet remote tourist destinations, wanted to refurbish their guest rooms and dining facilities.
Due to their location, the business experiences highly seasonal trading patterns, with turnover naturally reducing during the winter months. The owners were keen to carry out the renovation during the off-season to minimise disruption to guests, but traditional loan products with fixed monthly repayments would have placed unnecessary pressure on cashflow during this quieter period.
They needed a funding solution that would allow them to improve their premises while still maintaining financial stability throughout the low season.
The Solution
Recognising the seasonal nature of the business, we recommended a Merchant Cash Advance, a flexible funding option that links repayments directly to card sales rather than fixed monthly instalments.
With this structure, the client repaid a small, agreed percentage of daily card takings. This meant that during quieter months, repayments naturally reduced, while busier trading periods allowed the balance to be cleared more quickly.
This approach gave the business the freedom to complete essential renovation works without the stress of rigid repayment schedules. The flexibility of the facility proved so effective that the hotel has continued to use this type of funding in subsequent years to help manage cashflow during seasonal fluctuations.
The Results
The tailored funding solution gave the hotel owners real peace of mind, knowing repayments would always remain affordable and in line with their income. This ensured smooth trading throughout the low season and the successful completion of their renovation project.
Our relationship with the business has since grown into a partnership spanning more than eight years, with Charles, one of Elite Business Funding’s founding directors, personally visiting the hotel and staying with the family.
We can highly recommend The Lochindaal Hotel, a wonderful place to stay if you’re visiting Islay. Book with The Lochindaal Hotel today.