The hospitality sector has taken a beating in recent years, making it very difficult for this incredibly important UK business community to thrive in the way it deserves.  

Rising costs from inflation and taxes are amongst the causes of those rising fees, making the margins in which hotels, restaurants, B&Bs, cafes, pubs and bars operate, extremely tight.  

That means that it's more important than ever to make every day of the year work as hard as humanly possible for those businesses, so that no money is left on the table, occupancy is maximised and so is every pound earned. 

How hospitality businesses can make money work for them 

In the weeks following the festive period most hospitality businesses see a drop off in business. It is expected, and maybe even in some ways welcome in the wake of a particularly busy period over Christmas and New Year. For many, that makes this time of year the ideal time to refresh interiors and do any necessary maintenance work so that the next rush can be maximised without compromising customer experience. If you're a hotel for example, now might be the perfect time to close a few rooms and repaint them. 

Hopefully, the festive period means that the coffers are now comparatively full. If you're particularly lucky, you might even be feeling flush - you have the cash to spend on that refurbishment, but doing so might leave your proverbial cushion a little light once again. So, how can you put money to work without eating into your reserves? 

This is where a carefully considered business loan can provide the ideal solution - spending the money to get your business shipshape before the Valentine's Day, Half Term or Easter, and paying it off once those bookings start materialising once again.  

In this uncertain economic environment, keeping cash available for the unexpected is not only practical but it also helps to put your mind at rest. You can action plans to optimise business in 2026 without delay, and without spending money you would like to keep in place in case of a rainy day.  

You might find that short-term business loans, available from Rivers for terms between three and 12 months, are best for you, or that medium-term Business Growth Funding Loans from £5,000 to £100,000, available for between 24 and 60 months, better suit your needs. 

Funding business development for a new restaurant  

For example, a restaurant came to us looking for £30,000 to upgrade kitchen equipment and invest in in-house products, including new menus. This number was then revised to £75,000.  

As the appliances were not from a UK supplier, we needed to offer funding in the form of a business loan rather than asset finance. In addition, the business only incorporated at the start of 2024, so at the time of the application there were no annual financial accounts to base the loan on.  

Nonetheless, we were able to approve the loan for £75,000 over 36 months because of the strength of the application and the business credentials. 

How contractors can maximise opportunities with funding solutions 

On the other side of this transaction, contractors often find the early part of the year to be an especially busy time. Perhaps you're a builder, or you have a scaffolding business, for example, and you are in your 'feast' period between January and March, but you need additional equipment to enable you to accept the work. 

For sectors like hospitality to be able to use their downtime to improve facilities and do renovation or development works, contractors too need to have the flexibility to accept and execute the work as well. That might mean hiring more team members, more equipment, or being able to get better rates on materials when they are bought in bulk to optimise your own margins. 

That's where the right funding solutions can help you take up commercial opportunities. Short-term Cash Flow Solution Loans are ideal for purchasing stock, providing working capital, as well as training and hiring more staff so you can accept opportunities as they arise and make hay while the sun shines.