Swoop’s “glass half full” approach enables pub chain to seize opportunity to boost profits

After Pitcher Pub Group’s existing bank declined the facility request, Swoop stepped in to offer an alternative. How did Swoop secure the refinancing for this family run pub group?

Christoper and Marion Pitcher have been at the helm of their family-run pub group for 17 years. They were approached with the opportunity to switch suppliers, being offered a fee incentive and a reduced cost on beer supply. This was more than peanuts – the switch would unlock significant additional profitability that would go straight to the bottom line and the Pitchers realised this was too good an opportunity to miss. 

While the decision was easy, carrying out the plan was difficult due to their circumstances:

• The Pitchers had an existing loan to repay with their current supplier 

• Their existing bank declined to refinance the loan facility with the current supplier, citing the reasons that it was forecast-led, as well as the bank’s lack of appetite to support the pub sector

• Their existing bank was also reluctant to release the public houses held as security on the loan, despite the loans having been repaid 
  
  

When the bank called time on the Pitchers’ credit line, they sent for Swoop. 

Ann Marie Swift, Commercial Finance Manager at Swoop, took on the case with a thirst to find lenders that were looking to support the pub sector. Through gaining a thorough understanding of the proposed deal and the assets of the Pitcher Pub Group, Ann Marie demonstrated the improvement in profitability from switching suppliers would comfortably support the refinance of the existing brewery loan. Furthermore, she argued that the refinance should not be considered as ‘projection led’ due to the fact there would be no significant uplift in turnover; this was purely a case of unlocking additional profitability from existing turnover.

Swoop’s approach is to understand individual cases by staying close with all stakeholders at every stage of the journey. The team’s in-cider knowledge of the financial products on the market allows them to overcome the usual obstacles that see customers being turned away by their existing banks. 

No half measures

Ann Marie secured a speci-ale deal for Pitcher Pub Group. The client successfully refinanced their brewery loan with a lender supplied by Swoop and were able to switch suppliers, resulting in a direct gain on the profit margin. 

The additional profitability means that the Pitchers can reinvest in their portfolio of pubs and optimise new opportunities at a time when the sector has found it particularly difficult to continue trading, let alone improve their offer. 

Going beyond the beer necessities, Christoper Pitcher summarised his experience with Swoop:

‘Ann Marie was excellent at Swoop. She was able to refinance three of our pubs. I cannot thank her and the team enough and can only recommend her services.’

On always challenging the market status-quo and finding our customers the best deals, Ann Marie says:

‘We often see clients accepting their bank’s response and missing out on opportunities. It’s rewarding to be able to challenge constructively and reveal other options. We can find a better solution that ultimately delivers an outcome that can impact a customer’s business growth aspirations.’

The moral of the story: if your bank has you over a barrel, Swoop will pull out the stops to ensure you have a reason to break out the champagne!