• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Digital Issues
  • Advertise
  • About Us
    • Privacy Policy
  • Contact Us
  • Events Calendar
  • Subscribe
  • Resource Guide
Catering Foodservice & Events Magazine

Catering, Foodservice & Events Magazine

The leading trade publication for food service and event professionals

  • Business Tips
  • Food Trends
    • Outdoor Cooking
    • Wine, Beer and Cocktails
  • Industry Leaders
  • Equipment
    • Serviceware
    • Tableware
  • Technology
  • Weddings
  • Videos
  • Events Coverage

Five Reasons You May Need Financing in 2022

To deliver the highest-quality product to customers, foodservice businesses need to invest in the proper equipment. Photo by Yukiko Kanada
To deliver the highest-quality product to customers, foodservice businesses need to invest in the proper equipment. Photo by Yukiko Kanada

Small business funding may be the key for catering and event companies to thrive in the coming years

By Matthew Gillman, business finance expert and founder of SMB Compass

Small business financing has become increasingly vital to small businesses operating in the hospitality industry over the last few years. In 2020 alone, more than 110,000 U.S. restaurants and drinking establishments temporarily closed due to the COVID-19 pandemic. Some were able to recoup their losses, but many didn’t have the liquid funds to bounce back.

That said, small business financing is no longer just a growth strategy. For many small business owners, it’s a means of survival.

Following are five reasons a catering and events business may need financing to thrive in the coming years.

1. Repairing, Upgrading or Purchasing New Equipment

If you own your own catering or events company, you know how much you rely on your equipment to operate—things like refrigerators, stoves, vehicles for food and décor transport, etc. Small business financing can provide you with the capital needed to repair any damaged equipment you may have or to purchase new items.

2. Consolidating Debts

While it may sound counterproductive, taking out a loan to pay off existing loans is a great option to maintain healthy credit.

For catering and event companies, we saw how the COVID-19 crisis dramatically impacted sales and revenue. Strict safety measures and the implementation of a lockdown resulted in virtually zero demand for such services, making it much more difficult for you to make your debt repayments.

As 2022 begins, there’s a good chance you’re still working to catch up and finish repaying debts. A small business loan or credit can help with just that.

3. Increasing Brand Presence Through Better Marketing

Demand for catering and event services grew in 2021 as vaccines were administered and people felt safe to gather once again. As this momentum continues into 2022, you’ll want to make sure you have enough capital for marketing and advertising to attract new clientele.

Financing allows you to develop and execute long-term marketing campaigns, either through paid ads on social media platforms or via traditional media. When it comes to marketing, one size certainly does not fit all. Having access to outside funding gives you the flexibility to do some trial and error to see which strategies work best to reach your target audience.

Events businesses may want to devote resources to becoming a one-stop-shop for their clients. Photo by Robert Mathews
Events businesses may want to devote resources to becoming a one-stop-shop for their clients. Photo by Robert Mathews

4. Staying on Top of New Technology

Investing in technology allows you to optimize your time by streamlining operations and to provide better services to your clients. Let’s look at some specific technologies worth pursuing:

• If you’re in the events business:

Be a one-stop shop for your clients so they can come to you for all their event needs—everything from sound systems and decor to photography and videography.

• If you’re in the catering business:

Keeping track of your expenses is key to your operations. If you’re still managing your books by hand, a digital accounting solution is a worthwhile investment. These programs generate your financial reports for you, eliminating the chances for human error and saving you loads of time.

• If you’re in the restaurant business:

You need the proper equipment to deliver the highest quality product to your customers.

5. Having an Emergency Fund

If the COVID-19 pandemic taught us anything, it’s that emergencies and unforeseen expenses can arise at any time, and you never know when your business may take a hard hit. Small business financing allows you to create an emergency fund, so you’ll have access to capital if and when sudden challenges present themselves.

Find what small business financing is right for you

Not all types of financing are applicable to everyone. In fact, traditional lenders might frown upon small business owners who don’t have good enough qualifications to prove their creditworthiness. In that case, getting alternative business funds such as a line of credit, equipment financing or invoice financing may be right for you.

No matter what type of funding you need for your business, always talk to an expert first. Explore your options, and inform them of your needs, goals and current challenges.

Matthew Gillman, founder and CEO of SMB Compass
Matthew Gillman, founder and CEO of SMB Compass

ABOUT THE AUTHOR

Matthew Gillman is a business financing expert with more than a decade of experience in commercial lending. He is the founder and CEO of SMB Compass (smbcompass.com), a specialty finance company providing education and financing options for business owners.

Primary Sidebar

Digital issue & e-Newsletter

Search CFE-Magazine

More to See

To deliver the highest-quality product to customers, foodservice businesses need to invest in the proper equipment. Photo by Yukiko Kanada

Five Reasons You May Need Financing in 2022

Small business funding may be the key … [Read More...] about Five Reasons You May Need Financing in 2022

Bites & Bashes in Los Angeles recently served jjajangmyun, a Korean noodle dish, in mini to-go boxes during a wedding cocktail hour.

Small But Mighty

Packing tons of flavor in perfectly … [Read More...] about Small But Mighty

Keep a constant eye on social media and restaurant reviews, and take the time to respond to every review—especially if it’s negative.

How to Survive a Surge

With Omicron cases spiking nationwide, … [Read More...] about How to Survive a Surge

Tags

apps business business tips catering coaching cocktails COVID-19 creative foods creativity culinary Diane Kochilas drinks equipment events food safety food trends fundraising gala greek holiday ideas industry news insurance leasing local Mediterranean menu NACE online ordering operating costs outdoor outdoors packaging PBS people pizza recipes results social distancing software sustenance trends venues wedding weddings wine

Most read articles….

  • Success Stories – Ready for Their Close-Ups
  • Plant-Based Catering Is Blooming!
  • Make sure you understand the operating costs included in your commercial lease
  • Small But Mighty
  • Catering Magazine is now… Catering, Foodservice & Events
  • What Will Be Hot in 2020?
  • Weathering the Storm (Part 1)
  • Build Your Catering Business’s Online Presence
  • From Surplus to Sustenance
  • Shaking It Up
  • Outlook for 2022
  • Weathering the Storm (Part 2)
  • How to Organize Your Business Finances
  • Last But Not Least
  • Safe Set-Ups
  • THE STAYING POWER OF BBQ
  • Staying Safe
  • Getting Hitched Without a Hitch
  • Catering Outlook for 2021
  • Trends: Four Reasons to Consider a Virtual Kitchen

Footer

Copyright © 2022 Catering, Foodservice & Events/International Media Group Inc.