Asset Refinance Solves Seasonal Cashflow Challenges for an Ice Cream Business

Company Sector: Hospitality

Loan Type: Asset Refinance
Loan Amount: £20,345
Loan Purpose: Release cash tied up in assets the client didn’t realise they could finance and support cashflow during the quieter winter months

The Challenge

Ice cream manufacturing, ice cream vans and cafes situated in an idyllic tourist location means our client experienced extremely high demand during the summer months and significantly quieter trading in the winter. This seasonal pattern is familiar to many hospitality businesses and cashflow is often strained during off-peak periods.

Our clients had invested heavily in refurbishing their flagship café during a particularly busy summer, purchasing new kitchen equipment outright while cashflow was strong. As the business moved into the quieter winter months, however, this capital outlay created short-term pressure on working capital. They reached out to BEAR to discuss solutions for smoothing cashflow during the off-peak season. 

Our Solution

We structured an Asset Refinance Facility of £20,345 against the recently purchased equipment, spreading repayments over a four-year term. This released a portion of the capital tied up in the assets while allowing the business to retain full use of the equipment.

Our client received immediate working capital with a manageable monthly schedule aligned to their trading pattern.

The Results

Immediate impact:  The released funds eased short-term cashflow pressure during the winter trading period, allowing the business to continue operating smoothly without cutting back services or delaying payments.

Operational benefits:  Retention of upgraded kitchen equipment ensured continuity of service quality and capacity, supporting ongoing trading.

Financial benefits:  Improved cashflow visibility, reduced strain on reserves and greater flexibility heading into the next peak trading season.

If your business is facing similar challenges - get in touch to explore how we can help - 01832 770 273