Finance Options for Hospitality Businesses
Merchant Cash Advance
The merchant cash advance (MCA) is the single most popular finance product for hospitality businesses, and for good reason. Because repayments are collected as a percentage of your card takings, they automatically flex with your revenue. In a quiet January, you repay less. In a busy December, you repay more. There is no fixed monthly payment to meet regardless of trade, which makes MCAs structurally better suited to hospitality than a conventional term loan. We arrange MCAs from £5,000 to £500,000 for businesses taking card payments, with decisions typically within 24 hours and funds within 48.
Business Loans for Restaurants and Pubs
For refits, new site acquisitions, or planned investment where revenue is more predictable, a structured business loan gives you a fixed repayment schedule and a lower effective rate than an MCA. Unsecured loans up to £500,000 are available for hospitality businesses with 12+ months of trading history. Property-backed loans unlock larger facilities for freehold operators.
Asset Finance for Kitchen Equipment
Commercial kitchens require substantial investment: combi ovens, dishwashers, refrigeration units, extraction systems, coffee equipment. Rather than purchasing outright and draining working capital, asset finance spreads the cost over the equipment's useful life. Monthly payments from as little as £200 for smaller items, up to multi-site equipment packages in the millions.
Seasonal Working Capital
Hospitality businesses with strong seasonal peaks, coastal resorts, event caterers, ski chalets, Christmas markets, often need a working capital injection ahead of the peak season to fund stock, staffing, and marketing. A short-term working capital loan or revolving credit facility provides this flexibility, repaid from peak-period revenue.
Leasehold Improvement Finance
Fit-outs are one of the largest capital expenses in hospitality. Whether you are opening a new site, refreshing an existing venue, or converting a commercial property, leasehold improvement finance allows you to spread the cost. Terms up to 10 years, with funds available within 2-3 weeks.
What Lenders Look for in Hospitality Businesses
Specialist hospitality lenders focus on card terminal data, reservation systems, and real-time trading data rather than historic accounts alone. A restaurant processing £40,000 per month through card terminals has a stronger MCA case than its profit and loss might suggest. Key factors: monthly card turnover; trading period at the current premises; lease term remaining; and whether the business is owner-operated or managed.
Eligibility
Most hospitality finance products require: minimum 6 months of card terminal trading; a UK-registered business or sole trade; no current county court judgments over £2,500 unsatisfied; and a minimum £5,000 per month in card or bank receipts. Seasonal businesses with gaps in trading are often still eligible, speak to us.