Opening a Franchise: How Soft Asset Finance Funded Cake Inn's New Huntingdon Store
Company Sector: Bakery / Franchise
Finance Type: Soft Asset Finance
“Not many people know about Soft Asset Finance, but it was perfect for my franchisee client. Instead of sinking cash into equipment, fixtures and fittings, he was able to open the store with capital still in the business, not stuck in the shopfit. It was brilliant to be there for the opening and see the results, queues out the door and a happy client."
Lewis Moxham, Senior Broker - Bear Business Finance
Cake Inn Franchise
Cake Inn started life as a single store in Wellingborough, specialising in egg-free cakes. The brand grew rapidly and led to their own bakery and warehouse. Cake Inn has since grown into a national franchise brand with stores opening across the country.
The Challenge
"Covering all of it upfront in cash would have tied up capital better used elsewhere in the business"
Our client wanted to become a Cake Inn franchisee and open a store in Huntingdon. They had sourced their premises and now required a full front-of-house fit-out aligned to brand standards: equipment, flooring, electrics, lighting, signage, storage, branding and display counters.
Franchise openings come with a long list of business-critical costs, and covering all of it upfront in cash would have tied up capital better used elsewhere in the business.
Soft Asset Finance
"Not only does Soft Asset Finance preserve upfront capital, it also delivers tax efficiencies and spreads the cost of the VAT "
Soft Asset Finance is a product that many people are not familiar with. It funds the non-tangible, business-critical assets that a fit-out depends on such as fixtures, fittings, branding and equipment. Not only does Soft Asset Finance preserve upfront capital, it also delivers tax efficiencies and spreads the cost of the VAT.
For our Cake Inn franchisee, that meant:
- No large upfront project costs
- VAT spread over time
- Tax-deductible OpEx payments
- Cash reserves left free for stock, staffing, and day-to-day running costs
Full Fit-Out Covered
The Soft Asset Finance funded the complete shop fit-out, including:
Building & Interior Works
• Construction of a new partition wall
• Food-safe wall coverings in preparation areas
• New flooring and entrance matting
Plumbing & Utilities
• Sinks and washbasins
• Water boiler and installation
Electrical Installation
• New electrical circuits and sockets
• Dedicated power supply for the walk-in coldroom and water heater
• Ceiling lighting installation
Branding & Signage
• External fascia signage
• Wall graphics and counter branding
• Neon and window lighting
Furniture & Fixtures
• Main service counter with wooden worktop
• Stainless steel work benches
• Shelving units
Specialist Equipment
• Specialist cream machines supplied by our Business Partner DCA Equipment
• Two large glass display fridges
• Walk-in coldroom with food-safe finishes
The Results
Cake Inn opened its Huntingdon store fully fitted out to brand standards, without the upfront cash outlay. We were delighted to join our client at the opening event, where the new store proved an instant hit with the local community. The Mayor of Huntingdon, Patrick Kadewere, and Deputy Mayor Freya Cushman cut the ribbon to officially open the store, with plenty of people ready to sample the cakes.
Thinking of opening a franchise or refitting your premises? Get in touch - 01832 770 273