Bar & Pub Loans

What are bar & pub loans?

Essentially bar and pub finance is any form of funding facility used within the hospitality industry for any business rationale. The loan facility can be used for any of the following reasons and more:

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Enquire now to receive your pub finance quote

There are several ways you could look to achieve the business finance needed to push your bar business or pub business in the right direction, here at Smart Funding Solutions we explain the funding options available to you, offering flexible repayments and plenty of choices when it comes to choosing which product best suits your business.

What funding options are available to me?

What is a bridging loan?

This will depend on a number of factors; time trading, business credit score, financial accounts, current liabilities, personal credit rating etc. It’s important to weigh up the advantages and disadvantages of both unsecured business loans and secured business loans, as there’s never just a solo advantage or disadvantage.

The variety of business loans for pubs you can explore will be assessed individually as no business operates in the same way. There are endless types of business finance out there, we’ll run you through some typical bar loans and loans for pubs below.

Bank loans are notoriously slow and difficult to achieve, we work with funders that can provide a decision within 24-48 hours, with funds available to drawdown within 24 hours of signing the necessary paperwork.

Unsecured Loans

Unsecured funding

This is the most popular route to funding, as it’s the quickest and easiest form of business funding. Many different products fall into the unsecured business loan category, offering flexible monthly repayments and alternative funding options. You’ll be required to sign a personal guarantee with any form of business loan facility, which gives the lender extra confidence when it comes to lending you the funds needed. Deciding which financing option to progress with can be time-consuming, we can provide you with a finance quote for each individual product, making sure you progress with your ideal financial solution. Pub owners have a number of different term finance options, how long the term will be will depend on which of the finance solutions you decide to explore further.

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Revolving credit facility

This acts very much like a business overdraft facility, giving you access to an agreed credit limit where you can withdraw and repay as often as you like. Some lenders offer an interest-only facility, helping to manage cash flow over a short period of time, others with offer capital and interest repayments on the amount you’ve drawdown.

How much can you borrow?

Merchant cash advance

A cash advance against your average monthly card sales, repayments are via an agreed percentage of future credit, debit and online sales. With this facility, you can expect 1-1.5x your average monthly card transactions by way of a loan advance. As repayments are via a percentage of your future card transactions, repayments are flexible as opposed to fixed monthly repayments. This means if revenue slows down one month, you still only repay your agreed percentage, keeping all cash sales. Your agreed repayment % can vary from 8%-20%.

Asset Finance

Asset finance

This form of finance is designed to spread the cost of any equipment or vehicles needed to purchase for the business, avoiding the need to pay for anything in one lump sum. You’ll have the option to pay the VAT upfront or spread the cost over your monthly repayments. Both hire purchase and lease purchase will be available, one will mean you own the asset at the end of the agreement, and the other means you’ll have to pay a fee at the end to purchase the asset outright. If you already have equipment or vehicles on finance, we can look to refinance these, releasing equity as a form of cash advance.

VAT Loans

VAT finance

Most businesses have a legal requirement to pay VAT on a quarterly basis, the amount you owe HMRC will fluctuate depending on how well the business has performed in that particular quarter. Receiving an unexpected VAT bill can significantly affect cash flow, potentially putting public houses at risk. We can offer a funding option whereby you spread the cost of any VAT owed to HMRC over 3 affordable monthly repayments. This saves you paying for your VAT returns in one lump sum, helping cash flow through the business.

Invoice finance

Invoice finance

Most businesses in the pub industry and hospitality sectors are constantly owed money via suppliers or clients. Invoice finance is a financing option that allows a pub and bar business to lend money against any outstanding invoices owed to you. Regardless of the type of pub you run, we’re confident we’ll have the ideal funding solution for you.

Do I qualify?

To qualify for any of the options discussed above, you would need to pass the following criteria:

Smart Funding Solutions are authorised and regulated by the financial conduct authority, FRN: 972740.

We can also assist with any of the following requirements:

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Frequently Asked Questions

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Bar & Pub Loans are tailored financial solutions designed to support businesses within the hospitality industry, specifically bars and pubs. These loans can be used for a variety of purposes, including expansion, refurbishment, or everyday operational expenses.

Owners or operators of bars, pubs, or similar establishments within the hospitality industry are typically eligible to apply for a Bar & Pub loan. This includes both established businesses and start-ups.

A Bar & Pub loan can cover various expenses including refurbishments, purchasing equipment or inventory, funding marketing efforts, purchasing or leasing premises, or managing cash flow during off-peak seasons.

Lenders might offer various types of loans suited to the needs of bars and pubs, including secured and unsecured loans, short-term or long-term loans, or even specialized options such as equipment financing or invoice financing.

Assess your financial situation and the specific needs of your business. This includes how much funding you need, how quickly you need it, your ability to repay the loan, and the cost-effectiveness of the loan terms.

Applying usually involves approaching a lender – be it a bank, a private financial institution, or an online lender – with a solid business plan and providing documentation such as financial statements, proof of business ownership, and credit history.

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Interest rates can vary significantly from lender to lender and will depend on various factors including the loan amount, the term of the loan, the strength of your business financials, and your credit history.

Whether you need collateral significantly depends on the lender and the type of loan. Secured loans will require collateral, which could be equipment, property, or other business assets. However, unsecured loans do not typically require collateral.

Although having a good credit history makes loan approval more likely, some lenders may offer loans to businesses with bad credit, especially if you can demonstrate solid business financials or provide collateral.

Yes, the UK government offers several schemes to assist small businesses in the hospitality sector, such as the ‘Recovery Loan Scheme’. Always check official resources for the most current information about available support.

The timeline to receive funds largely depends on the lender. Some online lenders may be able to provide funds within a few days of approval, whereas traditional banks could require weeks of processing time.

Whether there’s a penalty for early repayment depends on your specific loan agreement. Some lenders might charge a fee for early repayment, while others may not. It’s crucial to understand these terms before accepting a loan.

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