Loans Hub · Business Finance by Industry
Business Loans for Restaurants
Funding built for restaurants, cafes and takeaways — for refurbishments, kitchen equipment, stock and staffing. Compare unsecured loans and card-takings advances from a whole-of-market UK panel.
Why restaurants borrow
Hospitality is capital-hungry and seasonal, so borrowing is often about timing rather than rescue. The most common reasons UK restaurants raise finance include:
- Refurbishing the dining room or refreshing the brand.
- Replacing or upgrading kitchen equipment.
- Buying stock ahead of a busy season.
- Covering payroll through a slow January or February.
- Opening a second site or adding delivery capacity.
How much can a restaurant borrow?
As a guide, unsecured lenders advance roughly one to two months of turnover, so a restaurant taking £40,000 a month might access £40,000 to £80,000. A merchant cash advance is sized on your monthly card takings, which suits venues where most covers pay by card. Affordability, not just the figure you ask for, sets the final amount.
What lenders look at for restaurants
Lenders know hospitality margins are tight, so they focus on consistency. Strong, steady card takings, a healthy bank account and a clear use of funds matter more than a perfect credit score. A venue with reliable weekend trade and tidy banking is an easy lend, even with the odd quiet midweek.
Best finance options for restaurants
Most restaurants choose between two routes. An unsecured business loan gives a fixed lump sum repaid over a set term — ideal for a planned refit. A merchant cash advance repays as a percentage of card sales, so you pay more on a busy Saturday and less on a quiet Tuesday, protecting cash flow through the seasons.
Seasonality and repayment
Trade swings hard between summer terraces and January lulls. If your income is seasonal, a card-takings advance flexes with sales, while a fixed loan is best matched to your busier months. Whichever you choose, model the repayment against your quietest week, not your best one.
Compare your finance options
It takes under a minute — and enquiring never affects your credit score.
Frequently asked questions
Can I get a restaurant business loan with bad credit?
Often yes. A merchant cash advance is assessed mainly on your card takings rather than your credit score, so adverse credit is less of a barrier than with a standard loan.
How quickly can a restaurant get funding?
Unsecured loans and card-takings advances are often decided within 24 to 48 hours and funded in a day or two, provided your bank statements are ready.
Can a new restaurant get a loan?
Newer venues can borrow, though amounts are smaller. A few months of strong card takings, or the government Start Up Loan, can fund an early-stage restaurant.
What can I use a restaurant loan for?
Almost any business purpose — refurbishment, kitchen equipment, stock, payroll, marketing or opening a second site.