Irregular revenue in hospitality - practical cash flow fixes

• Cash flow challenge: My business has unpredictable income due to seasonality and event schedules, making it hard to cover fixed costs year round.

• Perfect for: Restaurants, pubs, event spaces, and hotels needing to smooth cash flow and maintain service quality year-round. 

Novuna helps hospitality businesses access funding to bridge income gaps during quieter periods either, through our award winning in-house service or by comparing the market to find the best fit for your needs.

We work with providers who understand the hospitality sector, help you apply, and make sure you get the right deal to keep your business thriving all year.

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Understanding revenue fluctuations in hospitality

Income in hospitality can be influenced by seasonal tourism, economic conditions, public events, and even weather. While peak periods can bring a surge in cash, slow months can drain reserves especially when fixed costs remain constant.

Strategies to manage irregular income

• Invoice finance for event contracts: If you handle corporate events or large private bookings, invoice finance can help you unlock cash tied up in unpaid invoices before the event date.
• Merchant cash advances: Repay funding as a percentage of daily card sales - ideal if your revenue rises and falls in line with customer spending patterns.
• Flexible business overdrafts or revolving credit: Keep a safety net for quieter months so you can maintain service standards without compromising quality.
• Seasonal staff planning: Hire flexible staff on seasonal contracts to match staffing costs with demand.
• Pre-booking and voucher campaigns: Encourage customers to book in advance or purchase vouchers during peak times to create cash reserves for slower periods.
• Diversify revenue streams: Introduce off-season services like catering, online events, or private hire to balance income year-round.

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Choosing the right financial support

The best funding solution will match your repayment capacity with your income cycle. Many hospitality venues benefit from a mix of merchant cash advance for flexible repayments and invoice finance for predictable contract payments.

How Novuna Business Cash Flow supports this

We work with hospitality businesses to understand their revenue patterns and provide tailored finance options from invoice finance to merchant cash advance - that keep operations running smoothly no matter the season.