Restaurant Business Loans in the UK — What loan amounts can your restaurant access?

Summary: Restaurants in the UK can typically access funding from around £10,000 up to £5,000,000+ depending on purpose, trading history, security and lender appetite. UK Business Loans is an introducer that matches restaurants with lenders and finance brokers who specialise in hospitality — submit a short enquiry to get a free eligibility check and tailored quotes. (The enquiry form is for matching only — it is not an application.)

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Loan amounts restaurants can typically access — at a glance

Yes — restaurants can access from about £10,000 up to £5,000,000+. The exact amount a restaurant can secure depends on what the money is for (working capital, equipment, buy-to-let/purchase, expansion), the chosen product and the restaurant’s financial profile.

• Micro & small loans — £10,000–£50,000
  Typical uses: short-term working capital, seasonal stock, small equipment or last-minute repairs. Common products: unsecured business loans, merchant cash advances, short-term term loans. Typical terms: 6 months–3 years. Security: often unsecured or asset-secured.
• Medium loans — £50,000–£250,000
  Typical uses: full kitchen refit, relocation costs, significant equipment purchases, moderate site refurbishment. Common products: secured/part-secured business loans, asset finance, hire purchase, blended facilities. Typical terms: 1–7 years. Security: may require personal guarantees or assets as collateral.
• Large loans — £250,000–£2,000,000
  Typical uses: freehold purchase, major multi-room refurbishment, multi-site roll-out start. Common products: commercial mortgages, development/refurbishment loans, blended facilities with bridging and term finance. Typical terms: 5–25 years (for mortgages) or staged drawdowns (for development finance). Security: commercial property or sizable business assets usually required.
• Development & acquisition finance — £2,000,000+
  Typical uses: property acquisitions, converting buildings to hospitality use, multi-site acquisitions, franchise roll-outs. Common products: development finance, large commercial mortgages, structured finance lines often provided by specialist lenders. Typical terms: project-dependent; large security packages expected.

For more detail on sector-specific options, see our guide to restaurants business loans.

Which finance products suit each funding level?

Choosing the right product is as important as choosing the amount. Here’s how products map to common restaurant needs:

• Short-term cashflow loans & merchant cash advances (MCA) — best for £10k–£100k. Fast decisions, variable cost. Useful for immediate cashflow gaps but usually more expensive.
• Asset & equipment finance / hire purchase — from around £5k up to £500k+. Ideal for ovens, refrigeration, extraction systems and catering fleets. Preserves working capital and spreads cost.
• Invoice finance & overdrafts — amounts tied to invoices and turnover. Good for smoothing cashflow when payment cycles are long.
• Commercial mortgages — typically from £100k upwards (commonly £250k+) for buying premises or refinancing property. Longer terms and lower rates when secured against property.
• Development & refurbishment finance — project-based lending for conversions or major refits; often combined with staged draws and valuations.
• Franchise or multi-site funding — larger, often multi-million facilities combining debt, mezzanine and sometimes investor capital.

Product suitability depends on trading history, credit profile, collateral and the intended use of funds.

What determines how much your restaurant can borrow?

Lenders assess a combination of quantitative and qualitative factors. The main drivers are:

• Trading history & turnover — established restaurants with 2–3+ years of consistent turnover can access higher amounts.
• Profitability & margins — healthy gross and net margins improve lending capacity.
• Security & collateral — property-backed loans permit larger amounts; unsecured products cap at lower sums.
• Credit history — business and director credit scores affect rates and maximum offers.
• Balance sheet strength — assets, retained earnings and low existing debt increase borrowing headroom.
• Purpose & business plan — clear projects backed by realistic forecasts are more fundable, especially for development finance.
• Sector & location — high-street prime locations or proven tourist destinations may attract higher lender interest.

Example: A profitable company trading three years with £750k annual turnover may secure £100k–£500k in a mix of asset and term finance; the same turnover with a freehold property could access higher mortgage-style lending.

How quickly can you get a quote and funding?

Typical timeline when you use UK Business Loans to be matched:

1. Complete our short enquiry form — about 2 minutes.
2. We match your request to suitable lenders/brokers — often within hours.
3. Indicative quotes or calls from partners — typically within 24–72 hours for many products.
4. Completion timeframe varies by product: asset finance in days; unsecured loans within days–weeks; mortgages and development finance can take several weeks to months depending on valuations and legal work.

Remember: the enquiry is for matching and eligibility only — it is not an application and does not commit you to anything. Free Eligibility Check — Get Started

Typical costs & what to expect

Costs vary widely by product, lender and borrower risk profile. We do not quote rates — lenders/brokers you are matched with will provide full cost terms. General guidance:

• Short-term options and MCAs tend to have higher effective costs (fees and factor rates).
• Secured long-term loans (e.g., commercial mortgages) typically offer lower interest rates but require collateral and longer legal processes.
• Asset finance spreads cost but may include arrangement fees and final balloon payments.

Always compare APR, arrangement and exit fees, early repayment charges and total cost of credit. UK Business Loans is an introducer — we do not lend or provide regulated financial advice; quotes and terms come from the lender or broker.

How UK Business Loans helps restaurants access the right amount

We act as a fast, free matchmaker between restaurants and lenders/brokers. Our process:

• Submit a short enquiry (we only ask for key details and what you need).
• We match you with partners experienced in hospitality finance — they review your details and contact you with options.
• Receive multiple no-obligation quotes and compare terms, speeds and security requirements.

This saves time, reduces unsuccessful applications and increases the chance of a competitive offer. All enquiries are used only to match you with finance partners — the enquiry is not an application.

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What you’ll usually need to apply (quick checklist)

Having these ready speeds up the process and helps brokers provide indicative offers:

• Company name, registration number and contact details
• Last 12–24 months filed accounts (or management accounts for recent trading)
• Recent bank statements (typically 3–6 months)
• Cashflow forecast or project costs (for refits, purchases or development)
• VAT returns (if applicable) and tax status
• Details of assets and any existing loans
• Photo/specification and cost breakdown for equipment or refit plans

Tip: Many lenders can provide indicative guidance from limited information — submit what you have and we’ll match you appropriately.

Real-life examples (illustrative)

• Small café — needed £25,000 for a new espresso machine, small refurbishment and working capital. Solution: equipment finance + short-term loan. Timeline: quote in 48 hours; funding within 7–14 days.
• High-street restaurant — bought a freehold and completed a major refit for £350,000. Solution: commercial mortgage plus refurbishment loan. Timeline: several weeks for valuation and legal completion.
• Regional group expansion — acquired two sites and refitted them for £1.2m. Solution: development finance with staged drawdowns and a longer-term refinance. Timeline: months, with staged funding linked to project milestones.

These examples are illustrative only — they show typical uses and processes but are not guaranteed outcomes.

Frequently asked questions

What loan amount can a start-up restaurant get?

Start-ups can access funding from around £10,000 upwards, often via asset finance, merchant cash advances or specialist start-up lenders. Larger sums are possible if the project has tangible security, strong investment backing or an experienced management team with convincing forecasts.

Will submitting an enquiry affect my credit score?

No — submitting a short enquiry to UK Business Loans does not affect your credit score. Lenders or brokers we introduce may perform credit checks only if you proceed with a formal application.

Can I borrow to buy my premises?

Yes — commercial mortgages and development/acquisition finance can be used to buy restaurant premises. These facilities typically require property security and a robust appraisal.

Do you charge to use UK Business Loans?

No — our service is free for business owners. We introduce you to lenders and brokers who may charge fees as part of their terms; any fees will be disclosed by those providers.

How are quotes delivered?

After matching we typically receive contact from lenders/brokers by phone or email. You’ll get indicative quotes and full terms directly from them.

Ready to find the right restaurant finance?

Complete a short enquiry — it’s free, quick and not an application. We’ll match your restaurant with lenders and brokers who can provide tailored quotes for the amount you need.

Get Quote Now — Free Eligibility Check

Important: UK Business Loans is an introducer and not a lender or regulated financial adviser. We connect you with third‑party brokers and lenders. All finance is subject to application, affordability checks and lender acceptance. Your enquiry is used to match you — it is not an application.

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Written by: Lead Content, UK Business Loans — experienced in connecting UK hospitality businesses with specialist finance partners. Published: 29 October 2025. Last reviewed: 29 October 2025.

1. What loan amounts can a UK restaurant access?
Restaurants in the UK can typically access from around £10,000 up to £5,000,000+ depending on purpose, trading history, security and lender appetite.

2. Which finance products suit restaurant needs?
Common products for restaurants include short-term cashflow loans and MCAs for £10k–£100k, asset/equipment finance and hire purchase for £5k–£500k+, invoice finance and overdrafts for working capital, and commercial mortgages or development finance for property and larger projects.

3. How do lenders decide how much my restaurant can borrow?
Lenders assess trading history and turnover, profitability and margins, balance-sheet strength, credit history, collateral/security, and the quality of your business plan or project forecast.

4. Can start-up restaurants get funding?
Yes — start-ups can often access funding from about £10,000 via asset finance, specialist start-up lenders or blended facilities, with larger sums possible if there’s strong security, investor backing or an experienced management team.

5. Will submitting an enquiry through UK Business Loans affect my credit score or commit me to a loan?
No — submitting the short enquiry is a free eligibility/matching check that does not affect your credit score and is not a formal application or commitment to borrow.

6. How quickly will I receive quotes and funding?
After matching you can often get an initial response within hours and indicative quotes within 24–72 hours, while funding times vary by product — days for asset finance, weeks for unsecured loans, and several weeks to months for mortgages and development finance.

7. Do I need to provide security or personal guarantees for restaurant loans?
Smaller loans and some asset finance can be unsecured, but medium to large facilities and commercial mortgages usually require property security, business assets and/or personal guarantees.

8. Can I use a business loan to buy or refinance restaurant premises?
Yes — commercial mortgages and acquisition/development finance are commonly used to buy or refinance restaurant premises, typically starting from around £100k–£250k and requiring property security and valuations.

9. What documents will lenders or brokers commonly ask for when applying for restaurant finance?
Lenders typically request company details and registration, 12–24 months filed or management accounts, recent bank statements (3–6 months), cashflow forecasts or project costs, VAT returns (if applicable), and details of assets and existing loans.

10. Does UK Business Loans charge for matching restaurants with lenders and brokers?
No — UK Business Loans is a free introducer that connects you with FCA-regulated lenders and brokers (who may disclose their own fees), and we do not lend money or provide regulated financial advice.