Revolving business line of credit for restaurants & cafés — can UK Business Loans help?

Short answer: UK Business Loans does not lend directly. We match restaurants and cafés with lenders and brokers who can provide revolving business lines of credit and other working-capital products. Complete a free eligibility check to get matched with lenders who understand hospitality cashflow needs — facilities typically start from around £10,000 upwards.

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Does UK Business Loans offer a revolving line of credit for restaurants & cafés?

Directly: no — UK Business Loans does not provide finance. What we do is fast and practical: we use a short enquiry to match hospitality businesses with lenders and brokers who offer revolving business lines of credit and other working-capital solutions. For a busy restaurateur a line of credit is often the best short-term tool for variable trading months, staff payroll timing and one-off urgent repairs. If that sounds like what you need, start a free eligibility check and we’ll match you to the right providers.

What is a revolving business line of credit?

A revolving business line of credit is a flexible facility that lets a business borrow up to an agreed limit, repay, and borrow again during the life of the facility.

• How it works: lender agrees a credit limit (for example £25,000). You draw funds as needed, pay interest only on the amount used, and repay to free up the available limit.
• Common features: credit limit, interest on drawn balance, periodic fee or commitment fee, review/renewal terms, and occasionally lending covenants.
• Typical providers: high-street banks (for established companies), specialist alternative lenders, finance brokers and fintech platforms.

Pros for restaurants & cafés: predictable backup for seasonal swings, minimal cost when unused (depending on fees), quick access when you need to top up stock or cover staff costs.

Cons: variable rates can rise, some facilities include arrangement or renewal fees, and smaller or newer businesses may need to accept security or personal guarantees.

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Who can get a revolving line of credit? Eligibility & lender expectations

Eligibility varies by lender but common criteria include:

• Minimum trading history — many mainstream lenders expect at least 12 months of trading; specialist lenders may consider newer operators with strong cashflow projections.
• Turnover — lenders look at annual turnover and margins; larger facilities typically require higher turnover.
• Profitability and cashflow — management accounts, bank statements and VAT filings help demonstrate ability to service the facility.
• Director credit history — personal credit checks and director information are standard on many facilities.
• Security — unsecured lines exist but secured facilities (against business assets or property) are often cheaper and easier to obtain at larger limits.

Practical tips to improve eligibility:

• Keep 6–12 months of clean business bank statements.
• Prepare up-to-date management accounts and a short cashflow forecast.
• Separate business and personal bank accounts for clarity.
• Be honest about past issues — many lenders consider the full picture and specialist brokers can match you to lenders used to working with hospitality businesses.

Typical terms & costs restaurants should expect

Costs vary widely by lender and by business risk. Expect to see combinations of:

• Variable interest rate applied to the drawn balance (commonly linked to lender base rate + margin).
• Commitment or facility fees — charged on unused portion or annually for maintaining the facility.
• Arrangement fee — a one-off setup fee in some cases.
• Renewal and admin costs on periodic reviews.

Example scenarios (illustrative only):

• Small café: £25,000 limit; interest charged on drawn amounts at RPI + margin; minimal arrangement fee; monthly reviews.
• Multi-site restaurant group: £150,000 facility; lower margin with security; quarterly covenant checks; arrangement and legal fees higher.

Always compare total cost of credit including fees and penalties. To see likely terms for your business, request a free eligibility check.

Common use-cases for restaurants & cafés

Revolving lines of credit are well suited for:

• Managing weekday/weekend or seasonal fluctuations in takings.
• Purchasing bulk stock for busy periods or events.
• Covering payroll when takings are delayed (e.g., due to card processing timing).
• Emergency repairs or urgent equipment replacement to avoid closure.
• Short-term marketing campaigns to boost slow seasons.

What it’s not ideal for: long-term property purchases, major expansion capex or sustained multi-year investments — for those, consider term loans, asset finance or commercial mortgages.

Alternatives to a revolving line of credit

• Short-term business loans: one-off capital sums for fixed projects or refurbishments.
• Bank overdrafts: similar behaviourally but typically tied to your business current account and may be reviewed more frequently.
• Invoice finance: if you supply invoices to other businesses (B2B), invoice factoring or discounting can release cash tied up in invoices.
• Asset & equipment finance: spread the cost of ovens, fridges, POS systems over agreed terms.
• Merchant cash advance: repayable via a share of card receipts — fast but often higher cost and risk.

Learn more about related products on our business loans and finance pages: Business loans, Invoice finance, Asset finance, and our hospitality-specific resources under Restaurants & Catering. For dedicated restaurant guidance see our industry page on restaurants business loans.

How UK Business Loans helps restaurants find lines of credit

We act as a simple matchmaker between your business and lenders/brokers who specialise in hospitality finance. Our process is designed to be fast and low-effort for you:

1. Complete a short enquiry (takes around 2 minutes).
2. We analyse the request and identify lenders or brokers in our panel best suited to your needs.
3. Matched providers contact you directly with quotes and eligibility details — you compare and decide with no obligation.

Our service is free to businesses. We only share your details with partners who can help and who have been selected to match your profile. We don’t approve or underwrite finance — the lender or broker you choose completes credit, affordability and identity checks before any offer.

Start your enquiry — 2 minute form

Practical checklist: preparing to apply

To speed up the matching and application process have the following ready:

• 6–12 months business bank statements
• Recent management accounts and turnover figures
• VAT returns (if applicable)
• Company registration number and ID for directors
• A brief statement of how you will use the funds

Ready to get matched? Get Started — Free Eligibility Check

Frequently asked questions

Does applying through UK Business Loans affect my credit score?

Submitting an enquiry does not affect your credit score. Lenders or brokers may perform credit checks later if you progress with an application — they will inform you before doing so.

How fast can I get a line of credit?

Initial responses and indicative quotes can arrive the same day. Final setup time varies by lender and depends on documentation and any legal/security requirements.

Will I need to provide personal guarantees?

Sometimes — especially for smaller companies or larger facilities. It depends on the lender, the size of the facility and whether security is provided.

Can start-ups or businesses with poor credit apply?

Some specialist lenders accept newer businesses or those with credit issues, but pricing and terms may be less favourable. Our matching process helps identify those lenders most likely to consider your application.

What’s the difference between an overdraft and a revolving line of credit?

They are similar in behaviour but differ in provider, structure and terms. Overdrafts are usually tied to a bank current account; revolving lines of credit may be arranged by specialist lenders with different fee structures and renewal terms.

Next steps & legal note

To explore whether a revolving business line of credit is right for your restaurant or café, complete a short, no-obligation enquiry and we’ll match you to lenders and brokers who specialise in hospitality finance:

Get Quote Now — Free Eligibility Check

Privacy & consent: by submitting your details you consent to being contacted by matched lenders or brokers. This is a no-obligation enquiry — UK Business Loans is an introducer and not a lender. We only share your information with selected partners who can help assess your eligibility. Read our Privacy Policy for full details.

Legal & compliance note

UK Business Loans is an introducer that connects businesses with lenders and brokers. We do not provide credit or financial advice and are not a lender. Any lender or broker you deal with will carry out their own eligibility, credit and identity checks and is responsible for any decision to lend. This page is for information only and does not constitute a financial promotion on behalf of any specific lender.

Further reading: explore our other finance resources — Business loans, Invoice finance, Asset & equipment finance, and our hospitality category Restaurants & Catering.

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1. Does UK Business Loans provide a revolving line of credit for restaurants and cafés? — No; UK Business Loans is an introducer that matches restaurants and cafés with lenders and brokers who offer revolving business lines of credit rather than lending directly.
2. What is a revolving business line of credit for restaurants & cafés? — A revolving business line of credit is a flexible facility that lets a restaurant borrow up to an agreed limit, repay and redraw during the term while paying interest only on amounts drawn.
3. How much can I borrow with a revolving line of credit? — Amounts vary by lender and risk, but lenders on our panel typically offer facilities starting around £10,000 and can scale much higher depending on turnover and security.
4. Will submitting an enquiry through UK Business Loans affect my credit score? — No — submitting an enquiry to be matched does not affect your credit score, although matched lenders may carry out credit checks later if you choose to progress.
5. How quickly can I get quotes or access to a line of credit? — Initial eligibility responses and indicative quotes often arrive the same day, while final facility setup times depend on the chosen lender’s checks and documentation requirements.
6. What do lenders look for when assessing restaurants and cafés for a line of credit? — Lenders commonly assess trading history (often 6–12 months), turnover, profitability and cashflow (via bank statements and management accounts), director credit histories and any available security.
7. Will I need to provide personal guarantees or security? — Sometimes — many lenders ask for personal guarantees or business assets as security for larger or riskier facilities, while smaller unsecured lines may be available at higher cost.
8. What typical fees and interest should restaurants expect on a revolving line of credit? — Expect a variable interest rate on the drawn balance (base rate plus margin), and possibly commitment/facility fees, arrangement/setup fees and periodic renewal or admin charges.
9. What are the main alternatives to a revolving line of credit for restaurant cashflow? — Alternatives include short-term business loans, bank overdrafts, invoice finance (if you invoice other businesses), asset/equipment finance and merchant cash advances, each with different costs and use-cases.
10. How do I start the process with UK Business Loans and what documents will I need? — Complete the quick, free two-minute enquiry to be matched with suitable lenders or brokers, and have 6–12 months of business bank statements, recent management accounts, VAT returns (if applicable) and director ID ready for lenders.