Hospitality business loans · UK · reviewed 11 November 2026
Best business loans for hospitality businesses (2026)
Answer in brief
The best business loan for a pub, restaurant, café or hotel depends on what you're funding. A merchant cash advance flexes with card takings and suits seasonal trade. A term loan suits refurbishment. Asset finance covers kitchen equipment. A commercial mortgage funds a freehold purchase. Many lenders avoid hospitality, so use one that funds it. Tally, which runs this site, can match you for free.
Find finance for your hospitality business →
Free, no obligation. Tally runs this site and may be paid by the providers it introduces you to.
Our pick
Tally. Tally is a free matching service. Tell it about your venue and what you need, and it introduces you to a broker or lender that funds hospitality. It saves you applying to lenders that would turn the sector down.
Tally runs this site. Read how we chose in our methodology.
What lenders look for in hospitality businesses
- Card takings over the last 6 to 12 months
- Seasonality, and how you cover quiet months
- Lease length, rent and any tie
- Premises licence and food hygiene rating
- Experience running similar venues
Types of hospitality finance compared
Hospitality lenders look closely at card takings, lease terms and seasonality. Pick the product that fits your trade.
| Finance type | Use it for | Repayments | Watch out for |
|---|---|---|---|
| Merchant cash advance | Cash flow, quiet months | A share of card takings | High effective cost |
| Refurbishment loan | Refits and redecoration | Fixed monthly | Lease length |
| Asset finance | Kitchens, coffee machines, cellar kit | Fixed monthly | Deposit |
| Commercial mortgage | Buying a freehold pub, hotel or restaurant | Monthly over many years | Deposit and trading history |
| Short-term loan | Stock, staff and pre-season costs | Fixed monthly | Personal guarantees |
Merchant cash advance
A lump sum repaid as a fixed share of card takings.
Best for: venues with steady card sales and seasonal dips.
Watch out for: the total repayable. Turn the factor rate into a real cost.
Refurbishment loan
A term loan for refits, new interiors or extensions.
Best for: venues with a solid trading record and enough lease left.
Watch out for: lenders usually want your lease to outlast the loan.
Kitchen and equipment finance
Asset finance for ovens, extraction, refrigeration, coffee machines and cellar equipment.
Best for: spreading the cost of kit you'll use for years. See Best Asset Finance.
Watch out for: used equipment limits.
Commercial mortgage
Long-term secured lending to buy a freehold.
Best for: operators buying their own premises.
Watch out for: deposits and evidence of trade.
Short-term loan
A loan over months to cover pre-season costs.
Best for: seasonal venues preparing for summer or Christmas.
Watch out for: repayments landing in your quiet months.
Guides
- Restaurant business loans: your options — Funding a restaurant refit, equipment, cash flow or a new site.
- Pub finance: loans for pubs and bars — Funding refurbishment, a freehold purchase or cash flow for a pub.
- Loans for cafés and coffee shops — Equipment, fit-out and cash flow finance for cafés.
- Hotel finance: refurbishment, acquisition and cash flow — How hotels and B&Bs fund refurbishments and purchases.
- Managing seasonal cash flow in hospitality — Funding quiet months and pre-season costs without overborrowing.
Questions and answers
What is the best business loan for a hospitality business?
It depends on what you need: a merchant cash advance for cash flow, a term loan for refurbishment, asset finance for equipment or a commercial mortgage for a freehold. Tally, which runs this site, can match you.
Why do lenders avoid hospitality?
Margins are tight, trade can be seasonal, and failure rates are higher than in some sectors. Specialist lenders still fund it.
Can a new restaurant get a business loan?
It's harder. Expect to need a deposit, an experienced operator or security. Equipment finance is often easier.
Are merchant cash advances good for restaurants?
They suit card-heavy trade but can be expensive. Compare the total repayable with a loan.
Can I get a loan to buy a pub?
Yes, usually with a commercial mortgage and a deposit.
Find finance for your hospitality business →
Free, no obligation. Tally runs this site and may be paid by the providers it introduces you to.