Commercial kitchen equipment finance for UK hospitality
Choose hire purchase if you want to own long-life items such as a combi oven or cold room, leasing if you want a lower up-front cost or regular…
Hospitality
Hospitality business loans for hotels, restaurants, pubs and cafés
Finance for hotels, restaurants, pubs, cafés and breweries: which option suits a refit, equipment, seasonal cash flow or buying a venue, and what lenders check.
Explore funding options Prefer a quick call back? Leave your number
- No obligation discussion
- Access to 300+ lenders
- Free to enquire
“Thank you for all your support.”
- Amount
- From £10,000 to £10 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
- Lender panel
- 300+ lendersWhole-of-market search
In short
The right hospitality finance depends on what the money is for.
Kitchen, bar and brewing kit usually suits asset finance; a refit suits a term loan; seasonal dips suit revolving credit or a merchant cash advance; and buying premises or a venue suits a commercial mortgage or acquisition finance. Lenders pay most attention to off-season affordability, card takings and how long is left on the lease.
- Refurbishment and upgrades
- Equipment
- Working capital
- Energy-efficiency improvements
- Expansion
“He is fair and always gives advice that is in the best interest of his clients.”
About hospitality business loans
Hospitality business loans are finance for businesses that serve food.
Hospitality business loans are finance for businesses that serve food, drink, accommodation or events: hotels, restaurants, pubs and bars, cafés, B&Bs, breweries, caterers and venues. They pay for kitchen refits, furniture, working capital for the quiet months, a second site or the purchase of an existing venue.
Smart Funding Solutions is a broker, not a lender. We search our panel of 300+ lenders, including high street banks, specialist hospitality lenders and alternative finance providers, and approach those most likely to suit your business. This page sits within our wider SME loans section and links to detailed pages for each type of venue.
Funding needs
What hospitality businesses use finance for
Hospitality is capital-intensive and seasonal. Fit-outs are expensive, equipment wears out quickly and cash flow swings between peak and off-peak trading. Common reasons to borrow include:
Refurbishment and upgrades
dining rooms, bedrooms, bathrooms, outdoor seating and signageEquipment
commercial kitchen kit, refrigeration, coffee machines, bar systems, brewing kit, EPOS and furnitureWorking capital
stock, wages and supplier payments through the quieter seasonEnergy-efficiency improvements
insulation, efficient heating and cooling, LED lighting and water-saving fixturesExpansion
a new site, extra rooms or covers, or adding catering, events or takeawayAcquisition
buying an existing hotel, restaurant, pub or café, or buying out a partnerTax bills
spreading a VAT or corporation tax payment rather than draining reserves
Quick enquiry
Prefer a quick call back?
Not ready for the full application? Leave a few details and a broker will call you to talk it through. It is free, with no obligation.
- One short conversation, no paperwork yet
- Whole-of-market search across 300+ lenders
- Or call us on 01244 267694
A transaction we arranged
£50,000
Declined by several lenders. £50K funded by the right one.
Existing borrowing and historic profit failed several lenders’ standard credit models. We took the case to a different lender and got it funded.
Read the transaction- Sector
- Food production
- Structure
- Business facility
- Outcome
- Funded after other lenders declined
Types of hospitality finance
-
Unsecured business loans
Learn moreA lump sum repaid over a fixed term without a charge over property. Lenders usually ask directors for a personal guarantee. Suits refurbishments, marketing and general growth. See unsecured business loans.
-
Secured loans and commercial mortgages
Borrowing secured against property or other assets. Security can allow larger amounts and longer terms, and is the usual route for buying or refinancing freehold premises such as a hotel or pub.
-
Asset finance
Learn moreHire purchase or leasing spreads the cost of equipment over its working life, with the equipment itself acting as security. It preserves cash and keeps other credit lines free.
-
Merchant cash advance
Learn moreAn advance repaid as a percentage of future card takings, so repayments fall in quieter weeks and rise when trade is busy. It suits card-heavy venues with uneven seasonal income, but the total cost is often higher than a term loan. Read more about a merchant cash advance.
-
Working capital loans and revolving credit
Short-term borrowing or a facility you draw on and repay as needed, useful for stock, wages and bills between busy periods.
-
Acquisition finance
Learn moreFunding to buy an existing business. Lenders look at the target's accounts, its debts, the price you are paying and your experience of running a similar venue.
Explore this section
Choose the right option
Each option suits a different need. Start with the one closest to yours; we will compare the rest for you.
Restaurant loans to refit, equip and grow your restaurant
The best restaurant finance depends on what you are paying for. Kitchen equipment and fit-out items usually suit asset finance; a refit or marketing push…
Pub and bar loans for refits, stock and buying a pub
What a pub can borrow depends on how it is held and how it trades. A freehold purchase usually needs a pub or commercial mortgage and a deposit; a…
- Hotel finance to buy, refurbish or expand a hotel
- Brewery finance for breweries, distilleries and drinks producers
- Shisha bar finance for lounges and hookah bars
- Cafe business loans: how to finance a coffee shop
- Pop-up food business finance: funding a street food stall or food truck
- Bed and breakfast loans: how to buy, set up and finance a B&B
- Wedding business loans: funding for planners, stylists and event hire
- Guesthouse finance for established owners
- Caravan park and campsite finance
- Fish and chip shop finance for ranges, refits and purchases
- Food truck and mobile catering finance
- Wedding venue finance to buy, convert and grow a venue
Costs and terms
There is no single rate for hospitality finance. The cost depends on the product, amount, term, your credit profile, your trading figures and whether security is offered. Compare the total amount repayable, not just the headline rate, and check for arrangement fees, early repayment charges and whether a personal guarantee is required.
Mistakes to avoid
- Borrowing more than cash flow can support through the off-season
- Using short-term, expensive finance for long-term investments
- Committing to a large refit with little time left on the lease
- Overlooking arrangement fees, early repayment charges and personal guarantees
- Applying with incomplete paperwork, or accepting the first offer without comparing
Underwriting
What lenders look at
01
Trading history
how long the business has traded and whether turnover is steady or growing
02
Turnover and card takings
bank statements and card terminal data show how money actually comes in, including seasonal patterns
03
Profitability and affordability
whether the business can cover repayments in the off-season, not just at peak
04
Credit profile
the business's and directors' credit history; adverse credit narrows the choice but does not always rule finance out
05
Premises
whether you own the freehold or, if leased, how long is left and on what terms, since lenders want the business to stay put for the loan term
06
Security
property, equipment or a personal guarantee, depending on the product
07
Your plan
for start-ups, acquisitions and larger projects, a business plan with realistic forecasts and evidence of hospitality experience
Two lenders can read the same venue very differently. Some have no appetite for wet-led pubs or late-night bars but are comfortable with food-led restaurants and hotels; others cap exposure to hospitality altogether, or will only lend where there is a freehold to take as security. A short lease, a recent change of operator or heavy reliance on one peak season can close some doors while others remain open, which is why the choice of lender matters as much as the figures.
Before you apply
Documents to prepare
- Recent business bank statements, usually covering several months
- Latest filed accounts and up-to-date management accounts
- Card terminal statements if you take card payments
- Your lease, or details of the freehold, for property-related borrowing
- Quotes for any work or equipment
- For larger projects or acquisitions, a business plan and cash flow forecast
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
Which hospitality finance page fits your business?
| Business type | Typical funding needs | Detailed page |
|---|---|---|
| Restaurants | Kitchen equipment, dining-room refits, second sites, seasonal cash flow | Restaurant loans |
| Pubs and bars | Refurbishment, adding food, cellar and bar equipment, buying a freehold | Pub and bar loans |
| Hotels, B&Bs and guest houses | Room refurbishment, extra rooms, buying or refinancing the property | Hotel finance |
| Breweries | Brewhouse and canning kit, duty and VAT bills, trade-customer invoices | Brewery finance |
| Shisha lounges | Fit-out, ventilation, compliance works, working capital | Shisha bar finance |
We also have focused guides for cafe business loans, fish and chip shop finance, street food and pop-up businesses and commercial kitchen equipment finance.
Matching the finance to the need
| Need | Often suitable |
|---|---|
| Kitchen, bar or brewing equipment | Asset finance (hire purchase or leasing) |
| Refurbishment or refit | Unsecured or secured term loan |
| Stock, wages and seasonal dips | Revolving credit, overdraft or merchant cash advance |
| Buying premises or another venue | Commercial mortgage or secured loan |
| Short-term opportunity or urgent repair | Short-term loan or merchant cash advance |
As a rule, match the length of the finance to the life of what it pays for: a refit expected to last several years suits a longer term than a stock purchase that sells within weeks.
How the process works with us
- Tell us about your venue and what the money is for.
- We review your trading figures, card takings and premises position, and explain the realistic options.
- We approach suitable lenders on your behalf and deal with their questions.
- We go through offers with you, comparing total cost, term, security and flexibility in quiet months.
- The lender completes its checks and makes the final decision; decisions can come within a few working days once it has everything it needs.
We work with sole traders, partnerships, LLPs and limited companies. It is free to enquire; if a broker fee applies, it is disclosed separately before you proceed. When you are ready, start your application online.
FAQs
Questions clients ask
Can a new hospitality business get a loan?
Yes, but options are narrower. Lenders offering hospitality business loans to start-ups usually want a detailed business plan, relevant experience, a personal contribution and often a personal guarantee. Asset finance for kitchen and bar equipment can be easier to arrange because the kit secures it. Government-backed start-up schemes may also help. Our page on start-up business loans explains what lenders look for.
Can I get hospitality business loans with bad credit?
It can be possible, though choice narrows and costs usually rise. A merchant cash advance is assessed largely on card takings, and asset finance is secured on equipment, so both can be more accessible than an unsecured loan. Lenders still check credit history and will want past problems explained. Our guide to bad credit business loans covers what lenders consider.
How long do hospitality business loans take to arrange?
Some hospitality business loans, such as smaller unsecured loans or a merchant cash advance, can be arranged within a few working days in straightforward cases. Commercial mortgages, acquisitions and larger refits take longer because they involve valuations, legal work and more detailed checks. Having recent accounts, bank statements, card takings and a clear plan for the money ready helps speed things up.
Do hospitality business loans need a personal guarantee?
Most unsecured hospitality business loans ask directors for a personal guarantee, because fit-outs and stock have limited resale value and trading is seasonal. Secured loans and commercial mortgages rely on property, and asset finance on equipment, but smaller operators are often still asked for a guarantee. Read the terms carefully. Our guide to personal guarantees explains what to check before signing.
Relevant transactions
See more related deals More deals like this
£35K secured on the business premises, not the family home.
A pub and B&B wanted secured funding but needed clarity on where the security would sit. The charge went on the trading property.
First-charge secured loanRead the transaction
£38K further advance, repaid as a share of card sales.
An existing hospitality client needed more capital. The lender sized it on current card takings and the repayments already running.
Further advance, percentage of salesRead the transaction
Keep exploring
All guidesRelated funding options
How to buy a pub: ownership options, finance and opening steps
To buy a pub, first decide whether you want the freehold, a free-of-tie lease or a tied tenancy, as this sets how much you need…
Pub mortgage: finance to buy a freehold pub
A pub mortgage is a long-term commercial loan used to buy or refinance the freehold of a pub, secured on the property. Lenders…
Renewable energy business loans for solar, heat pumps and installers
Most businesses fund solar panels, batteries, heat pumps and EV chargers with hire purchase or leasing, using the equipment as…
Shipping business finance for freight forwarders and maritime operators
Freight forwarders and shipping agents mostly need working capital, because they pay carriers, ports and sometimes duty and VAT…
Sports business funding: loans, grants and finance for sports and leisure
How a sports business is funded depends mostly on whether it is a commercial business or a community club. Commercial venues,…
Technology business loans: funding options for tech and media firms
Tech and media firms are usually funded according to how they earn. Managed service providers with monthly contracts can use…
- DiscussTell us what the funding is for.
- Explore the marketWe search 300+ lenders and compare offers.
- Compare offersWe explain the options clearly.
- Move forwardChoose the right facility for your business.
What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
- Personal broker support
- No obligation discussion
- Free to enquire