What lenders check when assessing a UK restaurant for finance — turnover, bank statements & card takings

Summary: When lenders evaluate a UK restaurant they look at more than headline turnover. The strongest signals are consistent, traceable sales (especially card/POS takings), clear bank statements that prove cashflow, and healthy margins once costs like rent and labour are deducted. Lenders also review lease terms, licences, owner/director history and the type of finance required. Prepare 6–12 months of merchant statements, 3–12 months of bank statements, management accounts and a short cashflow forecast to speed up a decision. Get a Free Eligibility Check — Get Quote Now.

Quick summary — the six things lenders care about most

• Turnover and trends — consistency, seasonal patterns and growth.
• Bank statements — real cash movement, supplier and payroll outflows.
• Card takings / merchant statements — traceable proof of sales.
• Profitability & margins — gross margin, labour and food cost control.
• Lease, licences & fixed costs — rent burden and break clauses.
• Owner/director credit & trading history — experience and any adverse records.

If you want a fast, no-obligation review of your restaurant’s options, submit a quick enquiry for a Free Eligibility Check — Get Quote Now.

1. Turnover — headline vs sustainable revenue

Why turnover matters

Turnover (gross sales) signals scale — how much trading the restaurant does and what monthly borrowing capacity it might support. Lenders use turnover to understand whether your business can generate the cash needed to service debt, but they treat headline figures with caution.

What lenders check in turnover

• Monthly and annual totals — ideally a 12-month rolling picture.
• Seasonality — predictable summer/winter or weekend-only peaks.
• Growth or decline trends — steady rise is positive; unexplained drops raise questions.
• Consistency between POS reports and bank deposits — large gaps are scrutinised.

How to present turnover clearly

Give lenders a short summary: 12 months’ turnover, typical weekly pattern, and any one-off events (e.g., refurbishment, large private bookings). Normalise exceptional income (one-off events) so lenders see sustainable revenue.

2. Bank statements — the cashflow story lenders read

Why bank statements are so important

Bank statements show the real movement of cash: supplier payments, wages, rent, tax, loan repayments and irregular cash deposits. Lenders read them to verify that turnover converts into available cash and to spot potential risks such as frequent overdraft use or bounced payments.

What lenders look for on statements

• Regular deposits that match sales periods.
• Large, frequent withdrawals that may indicate director drawings.
• Overdraft or bounced payments — frequency and size.
• Supplier payment patterns and payroll outflows (are wages being paid on time?).
• Unexplained cash deposits — legitimacy and documentation.

How to tidy statements before applying

Reconcile accounts, label regular payments, and prepare a short note explaining unusual items. For most lenders you’ll want to provide 3–6 months as a minimum; 12 months is preferred for larger loans.

3. Card takings & POS/merchant statements — the most trusted sales proof

Why card takings matter more than cash

Card and EPOS takings are traceable and harder to manipulate than cash. Merchant statements from providers (Zettle, SumUp, Worldpay, Stripe etc.) are often treated as the single best proof of trading levels.

What lenders want to see

• Monthly card takings trends for 6–12 months.
• Chargeback and refund rates — low levels are positive.
• Average transaction value and number of transactions.
• Split of card vs cash — a high card proportion improves transparency.

Tips to strengthen card takings evidence

Provide merchant provider statements and POS reports, explain large refunds or seasonality, and where possible increase traceable sales by encouraging card payments or integrated EPOS reporting.

4. Profitability & costs — margins, COGS and labour

Lenders look beyond sales to margins. A high-turnover restaurant with low gross margin or inflated labour costs is riskier than a smaller, more profitable operation.

• Gross margin & food cost control — show typical food cost percentages and actions you take to maintain margins.
• Labour costs as a percentage of turnover — staffing rotas and efficiencies help lenders assess resilience.
• EBITDA / net profit — management accounts showing positive EBITDA are persuasive for bank-style lenders.

5. Lease, location & premises (practical business risk)

Lease length, break clauses, rent reviews and local trading conditions matter. A long lease at an unsustainable rent is a red flag. Lenders check licences (alcohol, music), food hygiene rating and any outstanding safety issues that could close the business.

6. Owners, credit & trading history

Owner & director experience

Experienced operators with a track record in hospitality reduce perceived risk. Lenders will ask about the management team and who runs day-to-day operations.

Credit history, defaults & insolvency

Adverse personal credit (CCJs, defaults, IVA, bankruptcy) can limit options or require stronger security. Be honest — hiding issues slows decisions. If credit is weak, lenders may look for mitigants such as higher deposits or stronger cashflow evidence.

7. Type of finance and lender expectations

Common facilities restaurants use

• Working capital loans — cover short-term cashflow gaps.
• Merchant cash advances (MCAs) — underwritten mainly on card takings; faster but typically more expensive.
• Asset & equipment finance — for ovens, refrigeration or fit-outs.
• Overdrafts — short-term buffer where banks are comfortable with the client.
• Refinance or consolidation — restructure higher-cost debt.

What different lenders expect

High-street banks typically require stronger credit profiles and audited accounts. Specialist hospitality lenders and brokers are more flexible on trading history. Alternative lenders and MCAs often focus on merchant statements and can deliver faster decisions but at higher cost.

Compare options with a Free Eligibility Check — Get Quote Now. Note: UK Business Loans connects you to lenders and brokers; we arrange loans from around £10,000 upwards.

8. Documentation checklist — what to have ready

• Business bank statements — last 3–12 months (business & director where requested).
• Merchant/POS statements — 6–12 months.
• Management accounts / profit & loss — year-to-date and last 1–2 years if available.
• VAT returns — last 12 months.
• Short business plan & cashflow forecast for the requested funds.
• Copy of lease or tenancy, rent schedule and any latest rent review.
• ID and proof of address for directors, company registration details.
• Evidence of licences (alcohol), food hygiene rating and insurance details.

Ready to get matched? Start a Free Eligibility Check — Get Quote Now.

9. How to improve your chance of approval (actionable steps)

• Separate business and personal banking — cleaner statements speed underwriting.
• Reduce or document personal drawings — lenders want to see funds re-invested into the business.
• Encourage card payments and use integrated EPOS for traceability.
• Prepare a 3–6 month cashflow forecast showing how the loan will be used and repaid.
• Tidy management accounts and ensure VAT returns are filed on time.
• Work with a specialist broker to access lenders experienced in hospitality.

10. Typical lender questions you’ll be asked

• Loan purpose and exact amount required.
• Monthly & annual turnover and busiest months.
• How much of sales are card vs cash?
• Lease length, rent and any upcoming rent reviews.
• Staff numbers and monthly wage bill.
• Any CCJs, defaults or previous insolvency?
• Projected use of funds and repayment plan.

11. Example scenarios

Case study 1 — Seasonal bistro

A coastal bistro with clear summer peaks and strong card takings applied for a seasonal working capital loan. By providing 12 months of merchant statements and a 3-month cashflow forecast, they were matched to a lender offering a short-term loan repaid during off-season when cashflow was stronger.

Case study 2 — Multi-site upgrade

A two-site cafe chain needed new kitchen equipment. Management accounts showed healthy margins and predictable rent costs. They were matched to asset finance specialists who funded equipment across both sites with repayments structured to match increased turnover post-upgrade.

Find more on our restaurants lending options at restaurants business loans — restaurants business loans. Or get a tailored quote today — Free Eligibility Check.

FAQs

Final summary & next steps

Turnover gets attention, but lenders read the full story: do bank statements and merchant reports back up those sales? Are margins healthy and rent sustainable? Preparing clean merchant statements, 3–12 months of bank statements and a short cashflow forecast will materially speed any decision. To explore options and get matched to lenders and brokers who specialise in hospitality, start your Free Eligibility Check now — Get Quote Now. UK Business Loans does not lend money; we connect restaurants with trusted lenders and brokers to help find the right solution for your business.

1. What do lenders check when assessing a UK restaurant for a business loan?
Lenders focus on consistent, traceable sales (especially card/POS takings), 3–12 months of bank statements showing cashflow, profitability and margins after rent and labour, lease/licence terms, and owner/director credit and trading history.

2. How much turnover do I need to get a restaurant loan in the UK?
There’s no fixed turnover threshold — lenders look at 12-month trading patterns and affordability, while many lenders arranged via UK Business Loans typically fund from around £10,000 upwards.

3. Do lenders prefer card/POS takings over cash takings?
Yes — card and merchant/POS statements are the most trusted evidence of sales, whereas heavy cash reliance will require reconciled till reports and clear cash-handling records.

4. What documents should I have ready for a restaurant loan application?
Prepare 3–12 months of business (and director where requested) bank statements, 6–12 months of merchant/POS statements, management accounts or P&L, VAT returns, a short cashflow forecast, lease and licence copies, and ID for directors.

5. Will enquiring via UK Business Loans affect my credit score?
No — making an enquiry or eligibility check through UK Business Loans does not affect your credit score; individual lenders may carry out checks only once you proceed.

6. How quickly can I expect a quote or match from UK Business Loans?
You’ll often receive a response within hours on business days, though speed depends on the completeness of your documentation and the complexity of your request.

7. What types of finance are commonly used by restaurants?
Restaurants commonly use working capital loans, merchant cash advances (MCAs), asset/equipment finance, overdrafts and refinance or consolidation facilities, depending on purpose and trading history.

8. Can I get restaurant funding if I have poor credit or past insolvency?
Some specialist lenders and brokers work with imperfect credit profiles, but options may require higher costs, more security or stronger cashflow evidence.

9. What practical steps improve my chance of loan approval?
Separate business and personal banking, increase traceable card sales via integrated EPOS, provide tidy merchant and bank statements, submit a 3–6 month cashflow forecast and work with a hospitality-specialist broker.

10. Is the UK Business Loans enquiry form a formal loan application?
No — the form is a free eligibility check and introducer service to match you with suitable lenders and brokers, not a binding application or credit decision.