How much can I borrow for a pub refurbishment and fit-out?

Quick summary: Typical borrowing for pub refurbishment ranges from about £10,000 for a small refresh to £2m+ for major redevelopment. Small works: £10k–£50k; medium refit (new kitchen/bar/layout): £50k–£250k; major overhaul/redevelopment: £250k–£2M+. Exact amounts depend on loan type, property ownership or lease terms, security available, trading performance and contractor quotes. Ready to get tailored options? Get a Free Eligibility Check.

Compliance note: We are an introducer. We do not lend money or provide regulated financial advice. We’ll match your business with specialist lenders and brokers who can provide quotes based on your circumstances. We arrange finance from £10,000 and upwards.

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Quick answer: borrowing ranges and examples

What affects how much you can borrow?

The headline figure is only a starting point — lenders look at several things when setting the maximum they’ll lend:

• Business trading history: Established pubs with 2–3 years’ accounts can access larger facilities; newer ventures may be limited or require stronger security.
• Turnover & profitability: Lenders will assess ongoing trading performance and projected sales after the refit.
• Credit profile: Business and owner/director credit histories affect rates and willingness to lend.
• Security and collateral: Commercial mortgages or charges over property support larger loans. Asset finance uses equipment as security.
• Loan purpose and cost breakdown: Detailed contractor quotes, VAT treatment, contingency and schedule of works matter — lenders want to see realistic budgets.
• Leasehold constraints: Landlord consent, length of lease and break clauses influence lending size and product choice.
• Regulatory / licensing: Planning, building regs and premises licence issues must be resolved before some lenders will complete.

Tip: Specialist hospitality lenders and brokers understand pub economics — matching to the right partner increases the amount you can access on acceptable terms.

Types of finance for pub refurbishment (what suits each need)

Choose product by purpose, size and timing. Below are the main options with typical sizes, terms and quick pros/cons.

Business loans (secured & unsecured)

• Typical amounts: £10k–£500k
• Terms: 1–7 years
• Best for: medium-cost refits where the business has trading history and predictable cashflow
• Pros: straightforward, fixed monthly repayments; unsecured possible for smaller amounts
• Cons: unsecured rates higher; large amounts often need security and personal guarantees

Commercial mortgages / refinance

• Typical amounts: £50k–£5M+
• Terms: 5–25 years
• Best for: buying a pub or major capital works to a property you own
• Pros: lower interest rates, long terms
• Cons: longer process, valuation and legal requirements

Development / refurbishment finance (staged drawdown)

• Typical amounts: £50k–£5M
• Best for: major rebuilds or extensions with staged payments
• Pros: funds released as works complete; tailored to project schedule
• Cons: higher fees, lender monitoring and valuations required

Asset & equipment finance

• Typical amounts: £5k–£200k
• Best for: kitchens, refrigeration, pumps, cellar kit
• Pros: preserves cash, often easier approval
• Cons: ties finance to specific equipment

Bridging loans

• Typical amounts: £25k–£5M
• Best for: short-term funding while awaiting longer-term finance or sale proceeds
• Pros: speed
• Cons: expensive monthly costs, short terms

Working capital — invoice finance & overdrafts

• Typical amounts: £10k–£1M
• Best for: keeping cashflow steady during lengthy refurb periods

Example combination: asset finance for a new kitchen (£30k) + unsecured business loan for décor and fixtures (£40k) = comprehensive solution without refinancing property.

For sector-specific guidance see our pubs sector overview: pubs business loans.

Typical borrowing scenarios — worked examples

Scenario A — Small local pub: minor refit

Cost estimate: £30,000 (new flooring, bar upgrade, lighting). Likely finance: unsecured business loan or equipment finance. Example repayment: £30k over 3 years at 9% = ~£956/month (illustrative).

Scenario B — Mid-size refit with new kitchen

Cost estimate: £150,000 (kitchen £70k, bar & layout £50k, permit fees & contingency £30k). Likely finance: mixed package — asset finance for kitchen (£70k), secured business loan for remainder (£80k). Terms: asset finance 5 years; loan 5–7 years. Lenders will want contractor quotes and 12–24 months’ trading performance.

Scenario C — Major redevelopment & extension

Cost estimate: £750,000–£1.5m. Likely finance: staged refurbishment loan or commercial mortgage with staged drawdowns. Requirements: detailed project plan, professional QS/quantity surveyor, planning consents, lender inspections before drawdowns. Timescale to fund: typically 6–12 weeks to first draw, longer for staged completions.

All figures are illustrative — exact repayments and rates vary by lender and borrower profile.

Costs, rates & LTV: what to expect

Below are indicative ranges to help budgeting. Rates and fees change with market conditions and borrower risk.

• Interest rates (indicative): unsecured business loans 6%–20% p.a.; secured commercial mortgages 3.5%–8% p.a.; bridging 0.5%–1.5% per month.
• Fees: arrangement fees 1%–3% of the facility; valuation, legal and monitoring fees may apply. Development finance often has uplift/exit fees.
• LTV expectations: commercial mortgages typically up to 60–70% LTV; development/refurb loans often lower LTV and require higher margins.
• VAT & contingency: building works usually attract VAT — factor 5–20% depending on the work and contractor. Allow 10–20% contingency in your budget.

Rates and fees vary — use our quick enquiry to see up-to-date lender offers. Get a Free Eligibility Check.

Application checklist — documents & how to prepare

Preparing these documents speeds the process and improves approval chances:

• Last 2–3 years’ business accounts (or management accounts) and management forecasts for 12–24 months
• Business bank statements (typically 3–6 months)
• Contractor quotes and itemised schedule of works
• Lease agreement or title deeds, landlord consent if leasehold
• Premises licence, planning consents, EPC
• Director ID, proof of address and credit information
• Project timeline and staged drawdown schedule for larger works

Pro tip: three competitive contractor quotes and a clear cashflow forecast make lenders more comfortable approving larger facilities.

Process & timeline: enquiry to funds

1. Submit short enquiry → we match you to suitable lenders/brokers
2. Initial discussions and rate guidance — often within 24–72 hours
3. Formal offer / conditional approval → due diligence (valuations, checks)
4. Legal completion and drawdown (first tranche) — typically 1–8 weeks depending on product

Staged development finance requires inspections before each drawdown — factor inspection windows into your project schedule.

Common pitfalls & practical tips to improve approval chances

• Avoid incomplete or non-itemised quotes — lenders want to see exactly what funds will buy.
• Don’t ignore landlord consent or licensing; unresolved regulatory issues block funding.
• Factor VAT and contingency into the budget — underestimating costs is the most common cause of mid‑project finance shortfalls.
• Work with a hospitality specialist broker where possible — they understand seasonal trading patterns and sector margins.

Small actions that help: tidy bookkeeping, realistic forecasts, and having evidence of expected uplift in sales post-refurb.

FAQs

How much can I borrow for a small pub refit?

Typically £10,000–£50,000 via unsecured loans, asset finance or vendor finance. The exact amount depends on trading history and security.

Can a new pub operator get refurbishment finance?

Yes — specialist lenders and package solutions exist for newer operators, but expect higher rates or additional security such as equipment finance or a stronger business plan.

Will lenders require a personal guarantee?

Often, yes — particularly for smaller companies or higher‑risk facilities. Guarantees and security requirements vary by lender.

How long does the process take?

Quick quotes can arrive within 24–72 hours. Completion and first drawdown typically take 1–8 weeks depending on the product and checks.

Are grants or incentives available?

Occasionally there are hospitality or sustainability grants — check local authority or industry bodies. Grants can reduce the loan amount required.

What if my landlord won’t give consent?

Without landlord consent, many lenders will not fund leasehold works. Open discussions and an agreed schedule of works with the landlord are essential.

Get a fast, no‑obligation quote — complete a short enquiry and we’ll match you to the lenders and brokers most likely to help.

Next steps — get tailored quotes

If you’re planning a pub refurbishment, the fastest way to get realistic borrowing figures is to complete a short enquiry. We’ll use your project details, quotes and trading information to connect you with specialist lenders and brokers who can provide tailored offers.

Ready to start? Get Quote Now — Free Eligibility Check. It takes around 2 minutes and there’s no obligation.

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1) How much can I borrow for a pub refurbishment or fit-out? — Typically between £10,000 for a small refresh and £2m+ for major redevelopment, with common bands of ~£10k–£50k (small), £50k–£250k (medium) and £250k–£2m+ (major) depending on loan type, security and trading performance.

2) What types of finance are available for pub refurbs and which suits my project? — Common options include unsecured or secured business loans, commercial mortgages, staged development/refurbishment loans, asset & equipment finance, bridging loans and working capital facilities like invoice finance, chosen according to project size, leasehold status and timing.

3) Can I get refurbishment finance if I operate under a lease (leasehold)? — Yes, but lease length, landlord consent and lease terms strongly influence lender appetite and product choice, and many lenders will require documented landlord consent before funding.

4) Will lenders ask for a personal guarantee or other security? — Many lenders do require personal guarantees or charges over property/equipment—especially for newer businesses or larger facilities—though requirements vary by lender and product.

5) How long does it take to get funds for a pub fit‑out? — You can get initial rate guidance within 24–72 hours, with legal completion and first drawdown typically in 1–8 weeks, while staged development finance may take longer due to inspections and valuations.

6) What documents do I need to apply for pub refurbishment finance? — Prepare 2–3 years’ business accounts or management accounts, 3–6 months’ bank statements, itemised contractor quotes and schedule of works, lease or title deeds, licences/planning consents, director ID and a 12–24 month cashflow forecast.

7) Can new pub operators or start‑ups secure refurbishment loans? — Yes—specialist lenders and tailored packages exist for new operators, but expect higher rates, stronger business plans, equipment-backed finance or additional security to mitigate lender risk.

8) How much will a pub refurbishment loan cost in interest and fees? — Indicative costs are unsecured business loans ~6%–20% p.a., commercial mortgages ~3.5%–8% p.a., bridging 0.5%–1.5% per month, plus arrangement, valuation and legal fees typically around 1%–3% depending on product and borrower risk.

9) Will submitting an enquiry to UK Business Loans affect my credit score? — No — submitting the free, no‑obligation enquiry does not affect your credit score, although any formal lender credit checks later in the process may.

10) How does UK Business Loans’ enquiry process work and is the form a loan application? — UK Business Loans is an introducer (not a lender) and its short enquiry form is not a formal application but a way to match your project details with FCA‑regulated brokers and lenders who will contact you with tailored options.