What finance products are typically used by UK restaurants?

Restaurants that take a meaningful share of payments on card commonly look at merchant cash advance. Asset finance is the usual route for kitchen kit, refrigeration and front-of-house furniture. Established operators with 12+ months of accounts may also consider an unsecured term loan. Final fit is subject to lender underwriting.

Can a new restaurant get finance in its first year?

It is harder. Platform-native cash advance products may consider merchants with a few months of card processing history. Asset finance on a single piece of equipment can be possible with a stronger director personal guarantee and a higher deposit. Criteria vary by lender.

How much can a UK restaurant typically borrow?

Indicative facility sizes for UK restaurants sit roughly between £10k and £150k, with larger amounts available where the freehold or a long lease is owned. Actual limits are set by each lender based on revenue, trading history and security.

Will lenders look at the food hygiene rating?

Yes, most lenders comfortable with hospitality will review the Food Standards Agency rating as part of their underwriting. A rating below three can narrow the lender pool materially.

Industry guide · Hospitality

Business finance options for UK restaurants

This guide explains which UK SME finance products may suit restaurants and the eligibility signals lenders typically weigh. Educational guidance only — Lendrly is not a regulated credit broker and does not submit applications on your behalf. Final fit is subject to lender underwriting.

Typical facility size for this industry: £10k to £150k. Last reviewed 2026-05-14.

Eligibility guidance only - not financial advice, not a loan offer, not a guarantee of approval. Lendrly is not FCA-authorised and is not a credit broker.

Common funding needs

The funding reasons we see most often for UK restaurants.

Funding a kitchen refit or extension after a lease renewal
Buying ovens, refrigeration, ventilation and front-of-house seating
Bridging cashflow between supplier payments and card-sale settlements
Stocking up on ingredients and beverages ahead of peak service weeks
Covering payroll across quieter weeks or short closures

Product families that may suit

Based on how UK lenders typically describe the profile of restaurants, the product families below are worth exploring. Whether any individual lender will fund is subject to lender underwriting, affordability checks and documentation.

Merchant Cash Advance

Cash advance repaid as a share of card/POS/platform sales.

Read the merchant cash advance guide →

Asset Finance

Finance to buy/refinance equipment, vehicles or machinery.

Read the asset finance guide →

Unsecured Business Loan

Term loan or credit line repaid through fixed instalments.

Read the unsecured business loan guide →

Common blockers and gotchas

What we see most often slow down or narrow the lender pool for UK restaurants. Worth checking before you apply.

Single-site operators with under six months of trading often fall short of lender thresholds
Card-sale volume below roughly £10k per month limits the MCA pool
Short remaining lease terms (under two years) restrict asset finance on bolted-in kit
Recent food hygiene downgrades or license issues flagged in due diligence
Heavy reliance on cash takings without a clear bank statement trail

Worked example

Illustrative scenario

A 14-month-old London bistro turning over roughly £45k per month on card payments wanted £30k to extend the kitchen and add two new prep stations. Card-led merchant cash advance and an asset finance lease on the refrigeration kit are products that may suit this profile, subject to lender underwriting and a clean food hygiene rating.

Illustrative only. Not a quote, not a loan offer, not a guarantee of approval. Eligibility is decided by each lender at underwriting.

Frequently asked questions

What finance products are typically used by UK restaurants?: Restaurants that take a meaningful share of payments on card commonly look at merchant cash advance. Asset finance is the usual route for kitchen kit, refrigeration and front-of-house furniture. Established operators with 12+ months of accounts may also consider an unsecured term loan. Final fit is subject to lender underwriting.
Can a new restaurant get finance in its first year?: It is harder. Platform-native cash advance products may consider merchants with a few months of card processing history. Asset finance on a single piece of equipment can be possible with a stronger director personal guarantee and a higher deposit. Criteria vary by lender.
How much can a UK restaurant typically borrow?: Indicative facility sizes for UK restaurants sit roughly between £10k and £150k, with larger amounts available where the freehold or a long lease is owned. Actual limits are set by each lender based on revenue, trading history and security.
Will lenders look at the food hygiene rating?: Yes, most lenders comfortable with hospitality will review the Food Standards Agency rating as part of their underwriting. A rating below three can narrow the lender pool materially.

See which UK lenders may suit your restaurants business

The eligibility checker takes about two minutes and returns a shortlist based on the criteria UK lenders publish. Educational guidance only — Lendrly does not submit applications on your behalf.

Open the eligibility checker Hospitality sector hub

Eligibility guidance only - not financial advice, not a loan offer, not a guarantee of approval. Lendrly is not FCA-authorised and is not a regulated credit broker. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment and documentation.