UK business loans for hospitality
UK hospitality business loans (restaurants, pubs, gastropubs, cafés, hotels, B&Bs) are dominated by merchant cash advance against card-machine takings. Capify and 365 Business Finance lead on hospitality MCA; iwoca covers working capital and VAT bill timing; Allica Bank handles commercial mortgages for owner-occupied premises and asset finance for kitchen equipment and fit-out. Typical tickets £25k to £250k for working capital, £150k+ for commercial mortgages. Sole-trade pubs face a smaller lender panel than Ltd companies.
Cash-flow shape
Evening and weekend peaks. Seasonal swings (December for cities, summer for tourist towns). Big VAT bills after busy quarters. Capex bursts at fit-out and renovation.
Products that fit
- Merchant cash advance
- VAT funding
- Asset finance for kitchen equipment and fit-out
- Commercial mortgage for owner-occupier premises
- Working-capital term loans for staffing-up cycles
Top UK lenders for hospitality
- Capify (MCA, hospitality specialist)
- 365 Business Finance (MCA, no-PG options)
- iwoca (working capital)
- Allica Bank (commercial mortgage and asset)
Typical tickets
£25k to £250k working capital; £150k+ commercial mortgages
Watch outs
- Mainstream lenders prefer Ltd; sole-trade pubs face a smaller panel.
- Existing high debt service from earlier expansion.
- Some lenders cap loan-to-turnover at hospitality margins.
- Alcohol licence required, verify before underwriting.
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Open our /get-quotes/ matcher →Last reviewed: 2026-04-26.