Which beggars the question of why we get asked for assistance by so many food based companies.
Food industry finance can be as simple as kitchen assets on a finance lease to replacing a new manufacturing, packaging and distribution system.
Finance will always differ depending on whether you are ‘Premier Foods’ or ‘George’s Kebab House’, either way you are still part of a £70bn industry.
Lack Of Understanding
The most common reason we think that finance can be difficult for the food industry is a lack of understanding of the business. That and cash sales are hard to prove, and often disappear from the books.
The other lender misconception of the food industry is that it lacks the cutting edge of technology or the potential to achieve rapid and scaleable growth.
We think that if a lender could see the innovation within the industry then the business owner could present a innovative and forward thinking business, making ‘food industry finance’ somewhat easier for the smaller player.
If you are in any doubt about the level of forward thinking and creativity within the food sector then let me give you a couple of true stories;
- In the early 1920’s taxidermist Clarence Birdseye watched some arctic dwellers storing fish and meat in a barrel of water which rapidly froze under local conditions. In 1923 Clarence Birdseye invented a process for flash freezing cardboard boxes of food. These went on sale in the 1930’s
- In 1946 Percy Spencer of Raytheon noticed his chocolate bar (that was in his pocket) melted after standing in front of a radar tube. This lead to the microwave oven
If you want to bring the story to the modern era, then McDonalds could tell you how many fries are in each portion, the width of each slice of gerkin, and the margin on every item.
The food industry may be a steady and consistent part of the UK economy but don’t underestimate how forward thinking the industry is.
For any food industry finance need then give us a call, we can find you a lender who ‘gets it’ and who knows, do you fancy being the next Captain Birdseye?
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