Funding solutions for your Shisha Bar

Shisha lounges or Hookah bars offer a chilled out environment, for relaxing with friends and enjoying the different flavours of shisha. As well as the hookah, they offer the chance to listen to music and enjoy Middle Eastern dining - while some less traditional establishments will offer alcohol. There are now many shisha lounges springing up all over the UK, and each one has its own special character.

Shisha bars find enthusiastic customers, with traditional patrons from the middle-eastern community increasingly joined by adventurous new groups. A bar in the right location could offer a lucrative business opportunity -  but like any business, getting your the finances right will be key to success.

 Fitting out to create the right ambience and provide the right user experience will be costly. The right location, with a community offering potential clientele  may command a premium, and you will need skilled staff. It all adds up to a long list of financial needs

 

The good news is that a growing number of lenders now recognise the potential of the sector, and may be able to provide the funds you need. If you can produce a sound business plan, the chances of securing funding can be good. But there are many forms of business finance and not all are suitable for your business. Finding the right solutions, and getting them at the right rate demands expertise, both with lending and with the hospitality industry.

 

At Rangewell, we are uniquely positioned to help find those solutions.

 

 

Funding Options for your shisha bar

The first step in securing the funding you need  to set up a shisha is simply to understand the different types of finance available.

Fortunately, there are funding options which can help you finance the equipment you need.

They include:

• Funding for setting up a shisha bar
• Funding for buying a business
• Asset finance - Leasing and Hire Purchase
• Operating  funding
• Tax funding

 

Funding for setting up a shisha bar

The right premises, in a quarter of a busy city with a middle eastern community may be the key to setting up a shisha bar. However, you will need permission from the local authority.  The position can be complicated. Shisha café regulations in the UK vary from area to area, but there are there are laws around smoking, building planning, health and safety and trading standards to satisfy.

 Due to smoke-free legislation t. Shisha can be smoked in the open air where there is no roof or ceiling above the smoker. Where there is a roof or ceiling, at least 50% of the walls of the structure must be permanently open. Some shelters created for Shisha smoking may need planning permission or may be breaching the smoking shelter legislation. It may be crucial to get expert advice.

If you’re supplying hot drinks and food, you need to comply with additional regulations.  A license may not be required unless alcohol is provided but a or a late night  café licence may be required if hot food and hot drinks are offered. You may also need to register with your local Food & 

Safety Team.

 

We can help you find the necessary funding for a deposit on leased property with an unsecured or secured loan <link>.

 

If you are ready to own your venue rather than run it as a leaseholder, you will need to raise a substantial amount of funding. We can help you find the solutions which fit your needs

 

You may prefer to buy premises, rather than rent them. Commercial mortgages can be used to buy virtually any business premises or an existing business. They work much like residential mortgages, although they are arranged on an individual basis. A lending manager will look at each application and will set the rate according to the risk. You may need a detailed business plan - the better your business proposition, the more likely you are to get a positive decision and the better the rates you are likely to be offered.

 

 

All commercial property finance is arranged on an individual basis. Get our help finding the most competitive lender. <link>

 

 Equipping your Shisha bar

The interior of your shisha bar may be key to its popularity. Whether you are seeking a traditional interior with antiques and tiles, or a contemporary feel, it is important to invest in quality decor.

We can help find funding which will provide the necessary design purchase and construction costs to create the interior you are aiming for.

Your shisha bar may also  require a range of catering equipment, particularly if you offer food. You may need music and lighting installations to create the right ambience.

 

Asset finance lets you spread the cost of  business equipment - or assets There are several types of asset finance:

 

Hire Purchase allows you to hire assets until you have paid for them, when they become yours. It can spread the cost of items such as seating  and tables that you expect to give long service for the long term. HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments.

 

Leasing is operates like a rental agreement. You pay a monthly charge to use the asset. It’s common for things such as large screens and refrigeration equipment which will have a limited life – it means you can easily update your equipment when you need to because of a change in plans or a better solution coming on the market.

 

Find out more  about the solution for your shisha bar here <link>.

 

 

Operating finance for your bar

Cashflow is a major challenge for any business.  It may take weeks or month for news of your shisha bar to spread, and to attract the number of patrons you need to be profitable.

You will need to find ways to deal with the costs while your business builds.

 

Revolving credit facilities bring a line of credit, with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds or for the short term.

 

Merchant cash advances  are a new solution and can be particularly valuable now that more and more customers are turning away from cash and making payments through card terminals or PDQ machines.

 

Merchant cash advances use this revenue stream as the security for a cash advance. The lender works with your payment company, and can advance you the equivalent of up to one month’s turnover, which is repaid by automatically deducting a proportion every time that a customer uses a card to pay.

 

 We can work with you to help you find the finance you need to answer your operating finance needs

 

 
 

Insurance cover for your takeaway or cafe business
Insurance protection for your staff is a legal requirement. You must have employers’ liability insurance up to the value of £5m against the cost of a claim if an employer is injured or becomes ill as a result of working for you.

You will also need insurance for your premises and equipment and for your liability to customers and the wider public. You should consider speaking to a specialist insurer  with experience of shisha bars who may be able to offer more suitable policies than mainstream insurers. There are a number of ways to provide for the costs. Find out more about funding for the premiums of insurance cover  for your bar.

 

Tax loans for shisha bar businesses

Tax is an issue for every business. You will be liable for VAT - and a  large quarterly VAT or annual tax demand can cause problems with your cashflow, particularly if it falls at a time when business is slow and cashflow is barely covering the essential outgoings. Tax finance can help, by providing a loan with a regular monthly repayment which can cover all your tax liabilities.

It can mean getting a better control of your  cash flow, and avoids the threat of penalties from the taxman.

Find out how a tax loan could support your cashflow <link>

 

Helping shisha bar businesses with problems

Any business can run into financial difficulties. A cashflow problem for your shisha bar could can mean that you cannot pay your suppliers. The problem could escalate rapidly.

At Rangewell, we know the solutions which can help your business deal with this kind of challenge.  We can provide funding solution if your business has run into difficulties - and even if you have a damaged credit history or CCjs, we know the lenders which can help.

Find out more about finance for bars facing financial difficulties.

 

How we help you capitalise your bar business

 

At Rangewell we have a team of business  finance experts with personal experience in the needs of the bar and club sector.

 

That means we can provide a unique service. We will help you to find the most appropriate funding from lenders across the market – from established high street banks to alternative funding suppliers. We offer every type of finance including Unsecured & Secured Loans, Invoice FInance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Bridge Loans, Property Development Finance, Growth Finance and more.

Getting the most cost-effective source of finance can be crucial for the future of your  bar.

 

Coming to Rangewell means getting finance experts working to help you find you find it.

 

Call us to discuss your needs.