Finance for hospitality businesses
Seasonal, card-heavy and viewed cautiously by mainstream lenders — which is exactly why the choice of funder makes such a difference here.
Request a callback- Commonly funded
- Kitchens, refurbishment, EPOS
- Typical facilities
- Asset finance, MCA, loans
- Lender focus
- Card income and lease terms
This page describes what businesses in this sector typically fund and what lenders generally look for. It is not a recommendation, and what is available to you depends on your own circumstances.
About hospitality
Hospitality gets a harder ride from mainstream lenders than its economics really justify. Failure rates in the sector are high, margins are thin and trade swings with the weather, so a good many funders simply avoid it as a category rather than assessing individual businesses.
Specialists take a different view, and there are useful structural advantages to work with. Card income is daily, visible and verifiable, which supports turnover-linked facilities well. Kitchen and bar equipment holds some value. A site with a solid lease and consistent takings is a perfectly fundable proposition to a lender who understands the trade.
What hospitality businesses fund
- Commercial kitchen equipment, refrigeration, extraction and cellar cooling.
- Front-of-house refurbishment, furniture, bars and seating.
- EPOS systems, ordering technology and payment terminals.
- Coffee machines, glass washers and specialist beverage equipment.
- Working capital for a second site, a seasonal build-up or a quiet quarter.
- Outdoor covers, heating and terrace areas to extend trading.
What lenders focus on
- Card takings over the past twelve months, read across the full seasonal cycle.
- The lease: how long is left, what the rent is, and whether it is assignable.
- Whether the site is tied to a brewery or supplier, and what that costs.
- Wage costs as a share of turnover, which is where many sites come unstuck.
- Track record of the operator, which counts heavily in a high-failure sector.
Frequently asked
Is a merchant cash advance a good idea for a restaurant?
It can be, because repayments fall away when trade does — genuinely useful for a seasonal site. But it is priced as a fixed fee, which often works out dearer than a term loan. We will convert both to a comparable figure so you can judge properly.
Can I fund a refit on a leased pub?
Yes, though lenders will want enough lease term remaining to cover the agreement, and will look closely at any tie arrangements. A five-year facility against a lease with two years to run will be difficult wherever you take it.
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Tell us what your business does
We will tell you which funders lend into your industry, and roughly what they are likely to say.
