Staycations Great for UK Tourism

Staycations Great for UK Tourism image

It’s no wonder that private investment companies and other equity groups are buying up caravan parks in the UK. It seems to be down to a few factors critically the knock on effect from Brexit and the slide in the value of the pound which has made the idea of holidaying in the UK far more attractive for many.

Research company Optus have reported that general turnover from holiday parks across the country have increased from £2.66 billion to £2.67 billion.

Such profits and generally good, solid performance within the sector have led many private equity groups to move in on investment and transactions across the UK.

Supporting retail outlets, shops and restaurants have also benefitted from the upsurge of consumer spending in such tourism areas.

But for some smaller tourism businesses, the peaks and troughs associated with seasonal activity mean it can be difficult to secure the finance required to renovate and improve facilities.

A merchant cash advance is one of the few alternative finance options that many UK tourism businesses use to help improve and grow their operations. It works with seasonality change only repaying when the business makes a sale via a credit card transaction. Perfect for when sales dip out of season.

As with many alternative funding products, a cash advance offers unique selling points. It is an unsecured form of borrowing which means business owners are not required to set a personal or commercial asset against the borrowing. There is no APR, hidden fees, charges or penalties for early or late repayment.

“It has been such an important government-backed product for the hospitality, leisure and tourism sector,” said an industry spokesman

“The hospitality and retail sectors have benefitted significantly from alternative finance products such as business cash advance lending. It has come into its own and the rewards for those businesses who have embraced growth means that they will be able to meet the growing demands from consumers choosing to holiday in the UK”.

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