150 big events a year and 15% tax paid, yet banks won't lend
An established Dhaka caterer handles 150 large projects a year and pays 15% tax on each, but its manager says banks still refuse it credit.
In an October 2024 report in The Business Standard, the manager of an established Dhaka catering company described what this business looks like. His company gets 150 big projects a year. Not only weddings — people now come to caterers for office parties, birthdays and circumcision ceremonies too; convention halls also work with catering companies. In winter there are events almost every day, and holidays and the Eid holidays are busy times too.
Whatever menu the customer wants — Mughal, Chinese, Indian — they make it; hilsa, pomfret and giant freshwater prawns are all possible. The report says that those who have a ready catering kitchen take orders day and night, even for small events such as an akd. Dhaka has more than fifty established caterers; some get 200–300 events a year.
The problem is capital. In the manager's words, 'We are paying 15 per cent service tax for every project, but the banks do not want to give us loans.' Although it is a growing sector, banks still do not lend to catering businesses — so to grow, you have to run on your own money.
Lessons
- 1.Build the 15% tax into every quote — it is higher than the restaurant rate.
- 2.Bank loans are hard to get, so plan to fund purchases from advances and your own savings.
- 3.A ready kitchen lets you keep earning from small events outside peak season.
We published this with the person's permission, without revealing who they are.
Discussion
Nobody has written anything yet. You can be the first.