Best UK business loans for hospitality
Hospitality lending is shaped by card flow. The lenders that win this segment are MCA specialists with sector underwriting plus a small number of mainstream term-loan lenders that understand seasonal cashflow.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 26 April 2026
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Merchant cash advance + term loan · £3.5k to £500k · Same day
Hospitality MCA specialist with the deepest sector underwriting.
Read full Capify review → -
Merchant cash advance · £10k to £500k · 24 to 48 hours
Direct MCA, no broker fee, strong on £25k+ tickets.
Read full 365 Business Finance review → -
Merchant cash advance and BNPL for SMBs · £1k to £1m · Same day to 48 hours
Embedded MCA via Worldpay / Barclaycard partnerships hospitality often uses.
Read full Liberis review → -
Flexi-loan / line of credit · £1k to £500k · Same day to 24 hours
Mainstream working capital for the non-MCA gap; flexi-loan helps with VAT bill timing.
Read full iwoca review → -
SME term loan + commercial mortgage · £150k to £5m · 5 to 10 business days
Commercial mortgage and asset finance for hospitality investing in property or fit-out.
Read full Allica Bank review →
Side-by-side comparison
| Lender | Typical rate | Ticket | Decision | Best for |
|---|---|---|---|---|
| Capify | Factor rate 1.15 to 1.45 | £3.5k to £500k | Same day | Hospitality MCA specialist with the deepest sector underwriting. |
| 365 Business Finance | Factor rate 1.10 to 1.40 | £10k to £500k | 24 to 48 hours | Direct MCA, no broker fee, strong on £25k+ tickets. |
| Liberis | Factor rate 1.10 to 1.40 | £1k to £1m | Same day to 48 hours | Embedded MCA via Worldpay / Barclaycard partnerships hospitality often uses. |
| iwoca | From 2% per month | £1k to £500k | Same day to 24 hours | Mainstream working capital for the non-MCA gap; flexi-loan helps with VAT bill t... |
| Allica Bank | From 7.99% APR | £150k to £5m | 5 to 10 business days | Commercial mortgage and asset finance for hospitality investing in property or f... |
What is the best business loan for a UK restaurant or pub?
For day-to-day cash flow against card takings, MCA from Capify or 365 Business Finance. For VAT bills and seasonal stock, an iwoca flexi-loan. For larger fit-out or property investment, an Allica Bank commercial mortgage or asset finance facility.
How does merchant cash advance work for UK hospitality?
You receive a lump sum, repaid as a percentage of daily card takings. Repayment scales with takings: busy weeks repay faster, quiet weeks slower. Sized against six months of card-machine history. Pricing is by factor rate, typically 1.20 to 1.40 total repayment.
Can a new UK hospitality business under 12 months get a loan?
On MCA, yes, with six months of card-machine history. On mainstream term loans, rarely. Pre-revenue concepts almost never; the British Business Bank Start Up Loan is the realistic first option for sub-six-month operators.
What credit checks apply to UK hospitality lending?
Soft search at quote on Capify, 365 and most reputable MCA lenders. Hard search on full application, visible to other lenders for 12 months. The director credit profile is checked alongside the company; sole-trader pubs sit on the director file.
Does Bounce Back Loan history affect new UK hospitality lending?
Active or unpaid Bounce Back Loans materially limit options. Most lenders will not lend additional unsecured debt while a BBL is in arrears. Repaid or restructured BBLs are largely neutral for current underwriting.
How we ranked these
Weighted on hospitality sector specialism (30%), card-flow underwriting (25%), decision speed (20%), eligibility clarity (15%), decline handling (10%).
Methodology weights
Weights specific to "Best UK business loans for hospitality":
- Hospitality sector specialism30%
- Card-flow underwriting25%
- Decision speed20%
- Eligibility clarity15%
- Decline handling10%
Full methodology.
Also considered
- YouLend (if you take Just Eat / Deliveroo)
- Funding Circle (mainstream term loans)
- Bizcap (post-decline)
Not for
Pre-revenue concepts; sub-6-month-trading hospitality.
Apply
Use our /get-quotes/ form to be matched across these lenders and apply with the ones most likely to approve your business.
Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.